Stifel Sees Higher Risk to ManTech (MANT) Guidance

Stifel analyst Joseph W. DeNardi reiterated a Hold rating and $90.00 price target on ManTech (NASDAQ: MANT) after the company reported adjusted EPS of $0.88, $0.02 ahead of expectations due to a lower tax rate as pretax income was slightly below our estimate. 1Q21 sales growth of 4%, with +1% organic, was below our +7%, with +5% organic, estimate which management attributed primarily to timing.

The analyst stated "The company reiterated its prior guidance for revenue, EPS, and cash flow which assumes ~~5% organic growth at the midpoint. There would appear to be slightly more risk to achieving that given a lower proportion of revenue currently in backlog (~80% now vs. ~90% last year) with more needed to be won than at this point in 2020. We view that risk as somewhat more acute this year given indications of award timing slowness from other government services companies. Our overall thesis is largely unchanged: ManTech is a high-quality asset in the industry with a valuation multiple consistent with that."

For an analyst ratings summary and ratings history on ManTech click here. For more ratings news on ManTech click here.

Shares of ManTech closed at $86.10 yesterday.

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