SRA International Posts In-Line 2Q, Jefferies Raises PT To $25

Jefferies & Company has published a research report on SRA International SRX after the company displayed better risk reward benefits near-term during its 2Q that showed modest booking and organic growth. In the report, Jefferies writes "SRA posted another in line quarter, with revenue growing 1.1% y/y organically (up 5.3% y/y as reported), weighed down by continuing resolution headwinds. Direct labor revenue grew 3% y/y as reported, but declined 1% y/y organically. A modest operating margin uptick (up 20 bps y/y to 7.3%), driven by cost reduction initiatives, combined with some tax credits, partially offset weaker volumes. Continuing EPS of $0.34 was a penny ahead of consensus." Jefferies maintains its Hold rating and has raised the price target from $22 to $25. SRA International closed yesterday at $26.79.