UPDATE: JP Morgan Downgrades SAIC to Neutral Following Strong Performance, Tough Environment

JP Morgan downgraded SAIC SAI from Overweight to Neutral and lowered the price target from $13.00 to $12.00. JP Morgan said, "We are reducing our estimates to reflect both the dimming outlook for organic revenue growth and the additional overhead SAI is taking on as it prepares to split into two companies. SAI has outperformed large-cap defense peers by ~1,300 bps and small-cap services peers by ~1,200 bps on a year-to-date basis. We expect Q4 earnings to be released in the latter part of March, and we anticipate a conservative initial outlook for FY14 earnings at that time. As a result of all of these considerations, we are downgrading SAI from Overweight to Neutral." SAIC closed at $12.25 on Tuesday.
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Posted In: Analyst ColorDowngradesAnalyst RatingsJP Morgan
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