Friday, October 09, 2020
DLH Holdings Corp. (DLHC)
Post IBA Acquisition Call Commentary
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.
Complementary Acquisition. Irving Burton Associates (IBA) is a highly complementary acquisition, in our view, and expands DLH’s end-to-end capabilities. The addition should enable DLH to provide a more complete offering to existing, and potentially new, clients. We are especially keen on IBA’s contracts with the Defense Health Agency and the Telemedicine & Advanced Research Center. The telehealth expertise should be transferrable to DLH’s existing VA contracts.
Increases Addressable Military Healthcare Market. DLH is now strategically positioned to compete in this $2.5 billion market, which is growing in the high single digits annually. IBA adds $143 million to DLH’s quarter-end $384 million backlog, with over $120 million of the backlog funded. IBA’s backlog supports 97% of its projected 2021 revenue …
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.
