Added to YB: 2018-06-08
Pitch date: 2018-06-08
PRSP [bullish]
Perspecta Inc.
+24.8%
current return
Author Info
Clark Street Value is a special sits/event-driven investor. Sign up for the newsletter.
Company Info
Perspecta Inc. provides enterprise information technology (IT) services to government customers. The company develops, modernizes, transforms, and manages customers’ enterprise application portfolios, enabling a shift of IT spend from maintenance and operations to innovation, and offers analytics and data services, as well as research, engineering, consulting, and technology solutions for government, including cybersecurity, cloud computing, quantum computing, network configuration, and data analytics capabilities.
Market Cap
$4.7B
Pitch Price
$23.51
Price Target
33.00 (+12%)
Dividend
N/A
EV/EBITDA
N/A
P/E
-6.34
EV/Sales
N/A
Sector
IT Services
Category
value
Perspecta: DXC Government Services Spin, CSRA 2.0
PRSP: Perspecta formed from DXC govt services spin + Vencore & KeyPoint. Trades at discount to peers despite high margin profile from fixed price contracts (riskier than cost-plus). $3.5B NGEN contract (17% of revs) up for re-compete, likely headwind. Upside to $33 at peer 12x EBITDA. Risks: NGEN loss, integration, leverage.
Read full article (4 min)