Tuesday, December 28, 2021
DLH (DLHC)
Raising PT to $21 on Ongoing Business Strength
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Raising PT to $21. We are raising our twelve month price target for DLHC shares to $21.00 from our prior $16.50 on the ongoing strength of the business and solid future growth opportunities. With the follow-up contract in Alaska and additional potential opportunities, we believe the risk/reward is positive. At our price target, DLHC shares would trade at 11.3x our fiscal 2022 adjusted EBITDA estimate and 1.2x our fiscal 2022 revenue estimate (both excluding the FEMA business), in-line with the peer group.
Outstanding YTD Performance. DLHC shares have been outstanding performers in 2021 with the shares up 97% YTD, compared to a 14.8% rise in the Russell 2000. We believe the rise to be a reflection of the Company’s broadening and deepening of its capabilities, which are focused on key areas of the Federal government health system. These programs enjoy widespread, bi-partisan support in the government …
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.