Perspecta management indicated that only 8% of revenue is subject to recompete over the next few years, which, when combined with its "strong" bookings, speaks to the company's growth potential, Stifel analyst Joseph DeNardi tells investors in a post-earnings research note. He believes Perspecta, excluding NGEN, has the potential to start growing the business mid-single digits. The stock's current valuation of eight times estimates fiscal 2022 EBITDA, well below peers at 14 times, reflects skepticism regarding the company's margin sustainability and organic growth, says the analyst. DeNardi thinks that if Perspecta can start to grow, credibility restoration could be quick and organic growth more in line with peers will drive its multiple more in line with peers. This was Perspecta's best earnings call as a public company, the analyst contends. He keeps a Buy rating on the shares with a $40 price target.