UPDATE: JP Morgan Reiterates Neutral, Raises Target to $14 on SAIC
JP Morgan maintains its Neutral rating on SAIC, Inc. (NYSE: SAI) and raises its target price to $14 from $13 as the company delivered a solid third quarter despite difficult circumstances.
JPM says, “SAIC reported Q3 EPS of 39 cents (ex CityTime charge of $232 mn and a $19 mn impairment related to the 2010 acquisition of CloudShield) which exceeded both our estimate and consensus (both 35 cents). Revenues of $2.8 bn were down 2% organically, consistent with our estimate. Operating margin ex the charge and impairment was 8.2%, 20 bps better than our estimate. The strength in operating margin was largely driven by the 10.6% margin in the Health, Energy and Civil Solutions business, which was up 200 bps y/y as it benefited from increased shipments of relatively higher margin products.”
SAI closed at $12.15 per share on Tuesday.
