In a report released yesterday, Keith Bachman from BMO Capital maintained a Hold rating on Telos, with a price target of $5.00.
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Keith Bachman has given his Hold rating due to a combination of factors, including solid recent performance but lingering longer-term uncertainties. Telos delivered better-than-expected results in its latest quarter, driven largely by strong growth in Security Solutions and robust trends in the TSA PreCheck-related business, which also supported improved margins and cash flow.
Despite this momentum, management chose not to lift full-year guidance, opting instead for a cautious stance and keeping forecasts and the $5 price target unchanged. Bachman sees meaningful potential in the government contract pipeline and believes Telos offers attractive security solutions, yet he also highlights significant uncertainty around the sustainability of revenue growth and consistent cash generation, which justifies maintaining a Hold rather than upgrading the stock.
In another report released today, D.A. Davidson also reiterated a Hold rating on the stock with a $4.00 price target.
TLS’s price has also changed moderately for the past six months – from $6.540 to $4.250, which is a -35.02% drop .