Analysts have raised their price target for Telos from $6.60 to $8.70, citing improved fair value assessments. This adjustment comes despite moderated revenue growth expectations and a higher projected future price-to-earnings ratio.
What's in the News
- Telos completed its recently announced share buyback, repurchasing 3.62 million shares for $18.92 million. This represents 5.13% of outstanding shares under the program initiated in May 2022 (Buyback Tranche Update).
- The company issued new earnings guidance for Q4 and full-year 2025, projecting revenue of $44.0 million to $46.3 million for the quarter and $162.0 million to $164.3 million for the year. This indicates 67% to 76% and 50% to 52% year-over-year growth respectively (Corporate Guidance - New/Confirmed).
- Telos continues to expand its TSA PreCheck enrollment centers and now operates 494 centers across 42 states and territories, making it easier for consumers to enroll and renew their participation (Business Expansions).
- A U.S. federal agency has become the first to deploy Telos' Xacta.ai platform enterprise-wide, leveraging AI-driven governance, risk, and compliance workflows to speed up and streamline compliance tasks (Client Announcements).
- Telos launched Xacta.ai, a new AI capability designed to accelerate cyber compliance by delivering real-time, expert-level risk and compliance insights to customers (Product-Related Announcements).
Valuation Changes
- Fair Value Estimate: increased from $6.60 to $8.70, reflecting a notably higher fair value assessment.
- Discount Rate: remained virtually unchanged and is holding steady at approximately 8.45%.
- Revenue Growth Forecast: reduced significantly from 34.3% to 22.6%.
- Net Profit Margin: decreased slightly from 12.56% to 12.42%.
- Future P/E Ratio: projected to rise considerably from 17.3x to 25.9x.
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