SAIC - SAIC downgraded at Stifel after earnings reveals unique challenges

After yesterday's "softer than expected" earnings results and downside FY22 guidance, Stifel downgrades Science Applications International Corp (SAIC) to Hold with a $90 price target.Analyst Joseph DeNardi: "SAIC's sources of missed expectations were varyingly unique, being driven by lighter bookings at the end of FY21 (somewhat unique), a more meaningful impact from COVID (not unique), and a significant and surprising de-booking of backlog (unique)."The analyst wants more visibility into the de-booking and "the degree to which margin and sales growth expectations have changed."SAIC shares are down 16.6% to $79.92.Yesterday, SAIC reported soft Q4 revenue and offered a downside full-year profit forecast.

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SAIC downgraded at Stifel after earnings reveals unique challenges