Telos Corporation and Singapore-based ST Engineering have inked a deal to provide cross-cloud governance, critical risk compliance and cybersecurity solutions to address mission-critical requirements of Asia Pacific’s regulated industries.
Under the partnership, Telos’ (TLS) Telos Ghost and Xacta capabilities will be incorporated in ST Engineering’s cloud governance, risk and compliance (GRC) and cybersecurity offerings. This will enable the companies to build augmented security and compliance spheres around critical systems in the cloud, on-premise and hybrid cloud environments.
The two companies had announced an agreement in April to offer GRC management solutions in Asia and the Middle East.
Telos Ghost keeps critical data and communications hidden from adversaries while assessing cyberattack threats. Telos' Xacta offers cyber risk management and compliance automation solutions. (See TLS stock analysis on TipRanks)
Telos’ CEO John B. Wood commented, “Singapore is the hub for information and cybersecurity technology throughout the region, and much of the world, and ST Engineering has demonstrated its capabilities in providing trusted, indigenous and future-ready cybersecurity solutions to secure government agencies and commercial enterprises across Public & Government Cloud as well as private cloud and enterprise technology space.”
On Dec. 23, Northland Securities analyst Nehal Chokshi increased the price target for Telos stock to $33 from $26 and reiterated a Buy rating.
Chokshi believes that the recent Sunburst cyberattack will likely make the US and its allies take a more offensive stance going forward, benefitting companies that have strong relationships with defense agencies and have defensive tools that can be repositioned as an offensive tool, such as Telos’ Ghost offering.
The rest of the Street is in line with Chokshi's bullish stance and the stock scores a Strong Buy analyst consensus based on 7 unanimous Buys. Telos went public in November 2020 and currently trades at $30.47. The stock has surged about 51% over the past month and the average price target of $31.36 indicates a modest upside potential of 2.9% from current levels.
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Shares of Cardtronics closed 15.1% higher on Friday after the non-bank automated teller machine (ATM) operator received a higher buyout offer from an unnamed third party.
Cardtronics (CATM) said that the third party has proposed to buy all of its common stock for $39 per share. Shares last closed at $41.08. The offer comes after the ATM operator entered into a buyout agreement with Catalyst Holdings on Dec. 15, 2020. Per the deal, Catalyst Holdings agreed to acquire all of its shares at $35 per share in cash. Cardtronics stated that the acquisition agreement with Catalyst remains in full force and effect.
Notably, Catalyst revised its offer price upward to $35 from the initial proposal of $31 per share offered on Dec. 9. (See CATM stock analysis on TipRanks)
On Dec. 10, Wells Fargo analyst Timothy Willi raised the stock’s price target to $40 (2.6% upside potential) from $35 and reiterated a Buy rating. In a note to investors, Willi said that the $31 per share offer is just a starting point and he expects buyout offer prices to go higher with the entry of new bidders.
Overall, the consensus among analysts is a Hold based on 3 Holds, 2 Buys, and 1 Sell. The average price target of $32 implies downside potential of around 22.1% over the next 12 months. Shares have declined 3.9% over the past year.
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Shares of Velodyne Lidar sank 7.3% on Friday after the producer of lidar sensors reported lower-than-expected preliminary results for the fourth quarter and full-year 2020. Velodyne is scheduled to report its fourth-quarter results on Feb. 25.
Velodyne (VLDR) expects to generate 4Q revenue in the range of $15.5 - $16 million, which is far below the Street’s projections of $27.3 million. As for the full year, the company forecasted to post revenue of $94 million, compared to the Street consensus of $100.9 million and its previous guidance of about $101 million.
Velodyne said that it shipped over 4,100 sensors to its global customer base in 4Q, and more than 11,500 units in 2020. Further, the company's project pipeline increased to 183 in 4Q compared to 175 at the end of 3Q.
Velodyne, citing “reduced near-term visibility,” withdrew its 2021 guidance. However, the company remains optimistic about its long-term prospects. (See VLDR stock analysis on TipRanks)
Despite the weak preliminary results, Oppenheimer analyst Colin Rusch maintained a Buy rating on the stock with a price target of $21 (12.3% downside potential). The analyst said, “We note the company made substantial progress in ramping shipments of its solid-state Vellaray product and hit its GM [gross margin] and operating income metrics despite lower revenue.”
Rusch added, “COVID-19 issues aside, we believe the company is executing well especially given the early stage of its product ramp and substantial lead over competitors in commercialization.”
From the rest of the Street, the stock scores a bullish outlook with a Strong Buy analyst consensus based on 6 unanimous Buys. The average analyst price target of $28.20 implies upside potential of about 17.8% to current levels. Shares have gained 28.1% since the stock was listed on the NASDAQ on Sept. 30, 2020.
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