SAIC price target raised to $130 from $120 at Jefferies

Jefferies analyst Sheila Kahyaoglu raised the firm’s price target on SAIC (SAIC) to $130 from $120 and keeps a Hold rating on the shares. The firm notes SAIC is scheduled to report Q1 earnings in early June. Jefferies estimates $2.02 of adjusted EPS, with flat revenues. Revenue guidance could be reaffirmed at $7.6B-$7.75B with limited DOGE impact to date, but some slowness in near-term procurement cycles may pressure the implied 4pts of on-contract growth, the firm adds, arguing that valuation at a more than 60% discount to peers’ free cash flow yield overly encompasses this risk.