Raising PT to $21. We are raising our twelve month price target for DLHC shares to $21.00 from our prior $16.50 on the ongoing strength of the business and solid future growth opportunities. With the follow-up contract in Alaska and additional potential opportunities, we believe the risk/reward is positive. At our price target, DLHC shares would trade at 11.3x our fiscal 2022 adjusted EBITDA estimate and 1.2x our fiscal 2022 revenue estimate (both excluding the FEMA business), in-line with the peer group.Outstanding YTD Performance. DLHC shares have been outstanding performers in 2021 with the shares up 97% YTD, compared to a 14.8% rise in the Russell 2000. We believe the rise to be a reflection of the Company's broadening and deepening of its capabilities, which are focused on key areas of the Federal government health system. These programs enjoy widespread, bi-partisan support in the government.Growing TAM. DLH's TAM grows just through the federal budgeting process. The VA is requesting a total of $269.9 billion for fiscal year 2022, a 10% increase above fiscal year 2021 enacted levels, and includes $2.6 billion (from all funding sources) for the total telehealth program. The HHS fiscal year 2022 budget request proposes $131.8 billion in discretionary budget authority, an increase of $25 billion from the fiscal year 2021 appropriated amount. The budget includes $52 billion for the National Institutes of Health, an increase of $9 billion above fiscal year 2021. The fiscal year 2022 budget request for the Defense Health Program is $35.6 billion, an increase of $1.5 billion from the fiscal year 2021 appropriated amount. This bodes well for continued growth at DLH.Maintaining Projections. For the 1Q22 we are projecting revenue of $158 million and EPS of $0.48 per share. For the full year, we are now at revenue of $393.5 million and EPS of $1.25 per share. Our FY22 EBITDA estimate is now $33.75 million, reflecting a greater percentage of pass thru revenue on the FEMA contracts. Read More >>