Cycurion's $7.00 price target sparks debate over undervalued cybersecurity stock
Cycurion, Inc., a Virginia-based cybersecurity firm, has received a target rating from Litchfield Hills Research. The analyst firm set a $7.00 price target, calling the company's current valuation a steep discount compared to industry peers. Shares have fallen sharply in recent months, dropping 78.2% over the past six months alone.
The McLean-based company specialises in IT cybersecurity and AI-driven services. It currently holds an $80 million contracted backlog—roughly four times its fiscal 2024 account revenue. Despite this, its stock trades below what analysts consider fair value, with a market capitalisation of just $10.68 million.
Cycurion's Price/Book ratio stands at 0.53, a figure that some investors see as a sign of undervaluation. At the $7.00 target, the company would trade at 2.9 times its estimated 2026 revenue, well below peer averages. CEO and Chairman Kevin Kelly has publicly expressed confidence in the firm's growth potential, citing its shift toward higher-margin cybersecurity solutions.
The company employs 46 people, with no recent reports of major workforce changes. Its planned acquisition of Kustom's video division focuses on revenue expansion rather than staff increases. Cycurion is now targeting state and local governments, along with small businesses, as key growth markets.
Cycurion's stock remains volatile, but analysts highlight its low valuation and strong revenue pipeline. The company's pivot to higher-margin services could reshape its financial outlook. For now, investors are watching whether the $7.00 target will gain traction in the coming months.
