CMOP Award. On Friday, DLH announced its had won the follow-on contract for CMOP medical logistics for the VA. This contract had originally been targeted for small businesses but the VA eventually removed all set-aside tiers and awarded the contract to incumbent DLH. This program processed over 120 million prescriptions in 2020 from seven geographical locations nationwide. We believe Friday's announcement positions the Company to win the remaining CMOP award for pharmacy services still outstanding.Contract Details. The contract includes a base period of one year, with four one year options. Total value of the contract, assuming all options are exercised is $202 million. The contract value is in-line with the previous contracts, which generated $43.7 million and $39.4 million of revenue in fiscal 2020 and fiscal 2019 for DLH.Ongoing Momentum. Friday's announcement is a continuation of ongoing momentum in DLH's businesses. Earlier this year, DLH was awarded a contract to continue operating the AIDS Clinical Trials Group’s Network Coordinating Center, with a value of up to 42 million, while last August, DLH won the re-compete to continue providing national monitoring support services to the Administration for Children and Families’ (ACF) Office of Head Start, with a value of $150 million.2Q21 Call. DLH will release its financial results for the fiscal second quarter ended March 31, 2021 on May 5, 2021 after the market closes. DLH will then host a conference call for the investment community the next morning, May 6th, at 11:00 a.m. Eastern Time. Dial in is 888-347-5290.Maintaining Outperform Rating. We are maintaining our Outperform rating and our twelve month price target of $14.00 per share. At our price target, DLHC shares would trade at 10.7x our fiscal 2021 adjusted EBITDA estimate and 1.1x our fiscal 2021 revenue estimate, still discounts to its peer group. Read More >>