UPDATE: Stifel Initiates Coverage On Science Applications International On Fair Valuation

In a report published Wednesday, Stifel analyst William Loomis initiated coverage on

with a Hold rating. In the report, Stifel noted, “We are initiating coverage of Science Applications International Corporation (SAIC) with a Hold rating on the shares. While we believe the company is in a good competitive position to benefit from a rebound in industry contract award activity later this year, we view the shares as fairly valued (9.1x CY15E EV/EBITDA vs. 7.7x for group) given our expectation for little growth over the next couple of years. SAIC was spun out of its former parent SAIC (now Leidos) on September 27, 2013.” Science Applications International closed on Tuesday at $44.70.