UPDATE: Jefferies Lowering Price Target On SAIC

Jefferies & Co. is out with a research report on SAIC, Inc. (NYSE: SAI) and is lowering its price target to $16 from $18, but is keeping its Hold rating on shares.

In a note to clients, Jefferies & Co. writes, "SAI's F2Q included a surprisingly large miss on revs and EPS, leading to a meaningful guide-down for F12 (though this revised outlook doesn't seem particularly conservative). Like some competitors, SAI continues to be impacted by federal budget pressures and a slowdown in decision-making and funding activity. CACI has been delivering much better growth than SAI, but we maintain Hold ratings on both amid a tough end-market."

Shares of SAI are down $1.51 in pre-market trading to $13.49.