Defense contractor SAIC, Inc. (
) on Monday caught a big upgrade from analysts at Jefferies &
The firm said it boosted its rating on SAI from "Hold" to "Buy"
with a $16 price target, suggesting a 20% upside to the stock's
Friday closing price of $13.32.
Jefferies cited several factors for the upgrade, including:
- a new and re-energized management team with achievable
- large dividend increases that assuage concerns about capital
- a potential rebound in the federal I.T. end market, and
- an attractive valuation.
SAIC shares were mostly flat in premarket trading Monday.
The Bottom Line
Shares of SAIC, Inc. (
) have a 3.60% dividend yield, based on Friday's closing stock
price of $13.32. The stock has technical support in the $12 price
area. If the shares can firm up, we see overhead resistance around
the $15 price level.
SAIC, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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, as well as a detailed explanation of
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