PSN - Leidos Holdings gains after Goldman upgrade SAIC Parsons higher despite downgrades

Leidos Holdings (LDOS) rose 3.8% after Goldman Sachs upgraded to buy from neutral, citing the fastest organic growth in its coverage universe over the next two years, helped by strong bookings.Goldman also sees significant upside to the 2021 free cash flow guidance of the IT services provider, with a "valuation we believe doesn't reflect the strengthening relative fundamentals," analyst Gavin Parsons wrote in a note.Goldman simultaneously cuts Science Applications (SAIC) to neutral from buy, writing that growth has improved at a "much slower pace" than expected and below what strong bookings would imply. In addition, potential for margin expansion seems more limited than originally expected.Parsons Corp. (PSN) was also cut to neutral from buy as the company is likely to "under-grow" its competitors. The stock has "re-rated" despite disappointing 2021 forecast and is near Goldman's price target.SAIC gained 2.5%, while Parsons rose 1%.Recall March 26, SAIC downgraded at Stifel after earnings reveals unique

For further details see:

Leidos Holdings gains after Goldman upgrade, SAIC, Parsons higher despite downgrades