Analysts have raised their price target for Telos from $6.00 to $6.60. They cite minor adjustments in the discount rate and future growth assumptions as the main factors behind the update.
What's in the News
- Telos continues nationwide expansion of TSA PreCheck enrollment centers in key states including California, Florida, Louisiana, Michigan, North Carolina, Texas, Indiana, South Dakota, and Colorado. The company now operates nearly 500 locations. (Key Developments)
- The company launched Xacta.ai, an AI-driven addition to its Xacta cyber governance, risk, and compliance platform. This new feature is aimed at dramatically reducing compliance timelines and the workload associated with risk management. (Key Developments)
- A major U.S. federal agency will be the first to adopt Xacta.ai enterprise wide, highlighting the government sector’s confidence in Telos’ AI-enabled GRC solutions. (Key Developments)
- Telos secured a $2.2 million contract with a federal agency for the use of its Xacta platform, reflecting continued growth in the government market. (Key Developments)
- The company reported the completion of a share repurchase tranche, buying more than 1.4 million shares in Q2 2025, and provided positive revenue guidance for the third and fourth quarters of 2025. (Key Developments)
Valuation Changes
- Fair Value: Increased from $6.00 to $6.60. This reflects a modest upward revision in the price target.
- Discount Rate: Decreased slightly from 8.48% to 8.45%, which indicates a small improvement in perceived risk.
- Revenue Growth: Remains essentially unchanged at 34.31%, showing stable growth expectations.
- Net Profit Margin: Dropped marginally from 12.75% to 12.56%. This suggests a slightly lower profitability outlook.
- Future P/E: Increased from 15.51x to 17.30x, pointing to higher valuation expectations for future earnings.
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