Canaccord Genuity Keeps Their Buy Rating on DLH Holdings

Canaccord Genuity analyst Kenneth Herbert maintained a Buy rating on DLH Holdings (NASDAQ: DLHC) yesterday and set a price target of $8. The company’s shares closed yesterday at $5.86.

Herbert wrote:

“We believe the Q2/18 results are strong, especially considering the delays in finalization of the FY18 budget, and uncertainty around funding and political support for key programs within HHS and Veterans Affairs. Specifically, the 15% sales growth, as compared to our estimate of 11%, was encouraging (remember guidance has been calling for MSD organic growth across the cycle). Management will host a conference call at 11am ET on May 16. Heading into the call, we will be focused on any updates to the revenue and gross margin outlook, the M&A landscape (we continue to see this as a way to create value considering the success with the Danya acquisition), and the latest on the new business bid pipeline and opportunity set. It appears that management has been successful with capturing higher-margin opportunities, which has been a focus.”

According to, Herbert is a 5-star analyst with an average return of 12.0% and a 64.0% success rate. Herbert covers the Consumer Goods sector, focusing on stocks such as Transdigm Group Inc, CPI Aerostructures, and Spirit AeroSystems.

DLH Holdings has an analyst consensus of Hold.

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The company has a one-year high of $6.83 and a one-year low of $4.70. Currently, DLH Holdings has an average volume of 7,239.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Kathryn Johnbull, the CFO of DLHC bought 17,000 shares for a total of $22,780.

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DLH Holdings Corp. engages in the provision of professional healthcare and social services to government agencies. It operates through its legal entities DLH Solutions, Inc. and Danya International LLC. DLH Solutions provides healthcare, logistics and technical support services in various areas, including MRI, radiologic, surgical and general, and medical laboratory technologies. Danya International provides technology-enabled program management, consulting, and digital communications solutions to federal government and other customers. The company was founded in 1969 and is headquartered in Atlanta, GA.