03:35 PM EDT, 03/18/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target unchanged at $135, 15.0x our FY 26 (Feb.) EPS view. This represents a discount to peers' current trading average of 20.3x, reflecting diminishing backlog and underwhelming contract renewal success rate. We keep our projection for FY 25 EPS at $8.10 and initiate FY 26's at $9.02. SAIC posted Q4 FY 24 revenue of $1.74B, above consensus by $100M, while adj-EPS of $1.43 missed by $0.01. Sales fell 12% driven by the sale of its Supply Chain Business. Excluding the impact of this, organic revenue growth was +8% in Q4 FY 24. As of February 2, 2024, SAIC's backlog fell to $22.76B ($3.54B funded) compared to $23.80B ($3.55B funded) a year ago. Also, management noted that win rates below its traditional 90% have hindered its net bookings ($1.40B in Q4; $6.70B in FY 24) and book-to-bill ratio (0.8x in Q4; 0.9x in FY 24). In our view, waning backlog and win rates indicate receding demand, which could put pressure on revenue growth (flat in FY 25; +2% in FY 26), upholding our neutral outlook.