Analysts from notable stockbroking firm, Lodge Partners, yesterday released a bullish research note on the archTIS Ltd (ASX: AR9) share price.
Why are analysts backing the archTIS share price?
Analysts from Lodge Partners backed their bullish outlook for archTIS by citing the company's recent quarterly update, board restructuring, fully developed product offering and commercialisation prospects. According to analysts, archTIS has made strong progress over the past 6 months and is well positioned to benefit from a range of domestic and international tailwinds such as the growing focus on cyber security.
The research report noted that the appointment of Dr Miles Jakeman to the archTIS board will provide the company with added experience and strong networks. Analysts also acknowledged the commercial performance of the company and its ability to renew key contracts with government clients as validation of it services. Also highlighted was the diverse applications of the company's services as well its achievement of a new contract with defence company, Norththrop Grumman.
What does archTIS do?
archTIS is an Australian based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian Government clients. In a bid to commercialise its services, archTIS launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.
How has the archTIS share price performed?
Yesterday, archTIS released an update for the fourth quarter of FY20, which noted the company's strong progress in commercialising its Kojensi platform. A highlight of the quarterly update included a renewed contract with the Commonwealth Government worth $400,000.
Additional highlights included archTIS securing its first commercial contract with the defence industry, reflecting the company's growing sales momentum. The company also acknowledged the successful completion of a $2.26 million capital raise in early June, which is designed to help archTIS accelerate the growth of its Kojensi platform to new markets.
Analysts from Lodge Partners also noted the federal government's $1.35 billion Cyber Enhanced Situational Awareness and Response (CESAR) package as a potential tailwind for archTIS given the recent cyber attacks from overseas operators.
The archTIS share price closed trading Tuesday around 4% higher and has rallied more than 380% since mid-June.
