UPDATE: Jefferies Assumes Coverage on SAIC at Hold

Jefferies is out with its report today on SAIC (NYSE: SAI), assuming coverage on SAI at Hold.

In a note to clients, Jefferies writes, "SAI has labored through a challenging federal IT spending environment for the past 12-18 months, and while there are finally some signs of thawing, organic growth seems unlikely to climb higher than low/mid single digits in the foreseeable future. Margin expansion (ex. 1x items) has also become muted. SAI's end-market remains tough but the stock's valuation (11x C12 P/E) is not demanding. We are assuming coverage of SAI with a Hold rating and $18 price target."

Shares of SAI closed Monday at $16.71, up 0.97% from Friday's close.