Thursday, February 04, 2021
DLH Holdings Corp. (DLHC)
Post 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.
Post Call Commentary. Management continues to see significant opportunities going forward. The enacted Federal budget stabilized key DLH customer funding. COVID continues to present near and long-term program opportunities. With the IBA acquisition, in our view, DLH is now well positioned to compete in a much broader category of opportunities, including such key focus areas to the new administration such as digital infrastructure, AI, telemedicine, and the move to the cloud.
Organic Growth. First quarter organic growth was stunted by COVID restrictions, which reduced pass-through travel expenses as well as certain compliance programs. Management is seeking ways to accomplish its compliance responsibilities under various methodologies without necessitating significant numbers of people on location. If successful, a significant portion of the reduced revenues will …
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.
