JP Morgan analyst Seth M. Seifman changed the rating on federal IT services companies, Science Applications International Corporation (NASDAQ:SAIC) and Booz Allen Hamilton Holding Corporation (NYSE:BAH).

The analyst upgraded Science Applications to Overweight from Neutral and raised the price target to $170 from $150.

During the April Investor Day, management emphasized plans to transition SAIC toward higher-value work, which is still in its early stages. Meanwhile, the analyst notes that last quarter’s results showed that SAIC is progressing.

Seifman writes that they see it in the qualified pipeline growing from approximately $115 billion in FY24 to $130 billion and in the planned increase in submitted bids from $17 billion last year to $22 billion this year.

The analyst says that SAIC must secure new contracts and ...

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