Noble Affirms KEYW Holding (KEYW) at 'Buy'; FY17 Expected to Produce Strong Results

Noble Financial affirms KEYW Holding (Nasdaq: KEYW) with a Buy rating and $10.50 price target following recent quarterly results and management commentary.

Analyst Mark Jordan noted that KEYW's outlook for 2017 remains positive, with revenue expected to grow 9 percent to $324.1 million for the period. With today's note, Jordan highlighted the following:

• Outsized Business Development Investment. Management has made a significant investment in business development, which is anticipated to begin showing a financial benefit in late 2017 or 2018. When this investment takes hold, revenue growth could exceed the high single digit growth projected for 2017.
• EBITDA Improvements Projected. 2017 Adjusted EBITDA is estimated at $42.9 million, compared to a 2016 estimate of $34.8 million. EBITDA margin improvement is projected as well, growing to 13.2% for 2017 from an 11.7% estimate for 2016.
• Renewed Focus on Value. The remainder of 2016 and 2017 represent a strategic shift towards true value added operations, and away from the discontinued money-losing Hexis business.

For an analyst ratings summary and ratings history on The KEYW Holding Corporation click here. For more ratings news on The KEYW Holding Corporation click here.

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