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Wednesday, June 10, 2020
DLH Holdings Corp. (DLHC)
Raising Price Target to $11.00 from $8.25
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.
Raising PT to $11.00. We are reiterating our Outperform rating and raising our twelve month price target to $11.00 per share, up from our previous $8.25 price target. At our new price target, DLHC shares would trade at 8.7x our fiscal 2020 adjusted EBITDA estimate and 0.9x our fiscal 2020 revenue estimate, still significant discounts to its peer group.
Stock Outperformance YTD. After years of trading in the $4-$6 range, DLHC shares broke out this year, up 112% YTD, compared to a 7.8% decline YTD in the Russell 2000. In our view, the outperformance can be attributable to…
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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.