SAIC - We Bought Telos For Our Cybersecurity Portfolio

• Telos is a federal contracting business focused on cybersecurity.
• Following the recent SolarWinds hack, the security sector is much in vogue and this has pushed up valuation multiples.
• Telos currently trades at around 11x trailing revenue, a big number for a services company, big enough to preclude much in the way of short-term gains in our view.
• But we hear the company is winning share in high-end federal agencies and we believe revenue growth in the whole security sector will accelerate.
• On that basis, we bought the stock for our Cybersecurity-36 portfolio, wherein we are looking three years out to try to ride the security wave.

For further details see: