SAIC Upgraded to “Buy” at Jefferies (SAI)

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Defense contractor SAIC, Inc. ( SAI ) on Monday caught a big upgrade from analysts at Jefferies & Co.

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 earnings guidance,
  • large dividend increases that assuage concerns about capital deployment,
  • 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. ( SAI ) 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. ( SAI ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: SAI

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