JPMorgan Downgrades Science Applications (SAIC) to Neutral

JPMorgan analyst Seth M. Seifman downgraded Science Applications (NASDAQ: SAIC) from Overweight to Neutral with a price target of $115.00 (from $140.00).

The analyst comments: "SAIC’s revenue outlook has weakened in recent months and while there should be less risk to the current forecast, the company’s strategic pivot is proving more challenging than expected following the change of administration. We applaud management’s transparency regarding the difficulties the company has encountered and we still see potential value here, given SAIC’s increased bidding activity and its ability to buy back stock. Nevertheless, with our estimates down to levels that are not especially unique and a sluggish revenue environment expected for the coming quarters, we are consequently downgrading to Neutral (from Overweight) and establishing a reduced Dec-26 price target of $115, which is ~11x our FY28 adj. EPS of $10.25."

For an analyst ratings summary and ratings history on Science Applications click here. For more ratings news on Science Applications click here.

Shares of Science Applications closed at $104.93 yesterday.

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