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SAIC — Science Applications International News Story

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Stifel initiates coverage on defense stocks

** Stifel starts coverage on defense and tech service providers with overwhelmingly "buy" rating

** "Credible U.S. deterrence is dependent on affordably evolving our weapon systems, recapitalizing the defense industrial base, and transforming government contracting," brokerage

     ** Optimistic on new defense technology firms such as Kratos Defense & Security Solutions Inc KTOS.O and AeroVironment Inc AVAV.O they stand to benefit from significant ramp-up in sales and earnings

** Sees strong opportunity in government services firms such as Leidos Holdings LDOS.N, Parsons Corp PSN.N, Science Applications International Corp SAIC.O, CACI International CACI.N , and Booz Allen Hamilton BAH.N driven by small size and flexible contracts enhancing growth

 ** As of last close, S&P 500 Industrials (Sector).SPLRCI had risen 9.2% YTD

CompanyRatingPrice Target
AeroVironmentBuy$240
Booz Allen HamiltonHold$112
CACI InternationalBuy$576
HEICO CorporationBuy$352
Kratos Defense & Security
Solutions
Buy$52
Leidos HoldingsBuy$178
Parsons CorporationBuy$81
Science Applications InternationalBuy$130
TransDigm GroupBuy$1,710
Teledyne TechnologiesBuy$626
V2XBuy$55
(Reporting by Apratim Sarkar) ((Apratim.Sarkar@thomsonreuters.com))

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