William Blair recently initiated coverage on this government contractor, with an ‘Outperform’ rating.
ManTech International Corporation (MANT)
From Upside
ManTech International, a provider of technology solutions that generates 98% of sales from the U.S. government, is seeing steady contract wins from defense and intelligence customers. In 2019, the company secured $2.9 billion in contract awards, putting its year-end backlog at $9.1 billion, up 8%. Importantly, roughly 50% of awards were new business.
ManTech earns an Overall score of 84, versus the average of 68 for the 24 technology-consulting stocks in Quadrix®.
Robust government spending has helped ManTech deliver steady growth. Though contracts can be delayed or terminated without notice, Wall Street still sees solid growth in 2020 despite a murky backdrop. Per-share earnings are forecast to reach $3.15 to $3.25, up at least 24%.
On December 31, ManTech held $8.9 million in cash and $36.5 million in long-term debt. A $500 million credit facility provides ample financial flexibility. In February, management increased the quarterly per-share 19% to $0.32.
ManTech is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, April 2020