Friday, May 07, 2021

DLH Holdings Corp. (DLHC)
Post Call Commentary, Updated Models

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two Down and One to Go. DLHC has now won recompetes on two of its three key contracts. We expect DLH to retain the VA logistics award after the protest and we believe the logistics win puts the Company in the drivers seat for the pharmacy services contract. Nailing down these three contracts positions the Company to add incremental organic growth from the recent acquisitions and any future acquisitions, in our view.


Expanded TAM.  DLH’s recent acquisitions, specifically S3 and IBA, have expanded the Company’s Total Addressable Market, in our view. Management continues to see significant opportunities going forward and we believe the Company’s increased size provides DLH with the breadth and depth to compete for an expanded menu of awards. We also believe the Company will be successful in competing for …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.