B. Riley analyst Zach Cummins upgraded Telos to Buy from Neutral with a price target of $4.50, up from $2.75. The company’s Q3 revenue and adjusted EBITDA exceeded management’s guidance and consensus expectations, driven by higher volumes from the Transportation Security Administration PreCheck program, a rebound in customer activity on a confidential program, higher gross margin, and ongoing cost discipline, the analyst tells investors in a research note. The firm believes the stock’s favorable risk/reward profile warrants an upgrade sees a potential path to a $6-plus per share price in a “home-run” scenario that assumes Telos secures two large opportunities in the coming months.
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Read More on TLS:
- Telos upgraded to Buy from Neutral at B. Riley
- Telos raises 2023 revenue view to $134M-$138M from $122M-$137M
- Telos sees Q4 revenue $30M-$34M
- Telos reports Q3 adjusted EPS (7c) vs. 10c last year
- Telos Corporation Announces Third Quarter Results: Exceeds Guidance on All Metrics, Significantly Expands Gross Margin, Returns to Positive Cash Flow From Operations, and Raises Full-Year Outlook