Cantor Fitzgerald begins coverage of five in ‘GovTech’ with three buys

As previously reported last night, Cantor Fitzgerald analyst Colin Canfield initiated coverage of five Government Technology & Space, or “GovTech,” stocks, starting SAIC (SAIC) with a Neutral rating and $120 price target Amentum (AMTM) with a Neutral rating and $25 price target Booz Allen (BAH) with an Overweight rating and $160 price target Leidos (LDOS) with an Overweight rating and $185 price target and CACI (CACI) with an Overweight rating and $535 price target While the firm believes a renewed U.S. focus on deficit reduction suggests flatter growth, especially for Civil accounts, it also thinks global conflicts will rapidly shift Congressional focus back from fiscal to national security threats, supporting Defense and Intel names such as Booz Allen and CACI. The firm also says market reactions around Leidos’ Civil exposure, especially in Aero and Health, “allow us to get constructive on the name.” The firm also thinks a focus on “best value” may enable margin expansion opportunities across the market despite new administrative priorities, the analyst added.