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Investing.com - Jefferies has raised its price target on CACI International (NYSE:CACI) to $570.00 from $535.00 while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $487.81, with InvestingPro data showing the stock has already delivered strong returns of 17.6% over the past six months.
The price target increase comes ahead of CACI’s fiscal fourth-quarter 2025 results, which are expected to be reported on August 6 along with the company’s fiscal year 2026 guidance. According to InvestingPro analysis, CACI maintains a strong financial health score, with liquid assets exceeding short-term obligations and a healthy current ratio of 1.58.
Jefferies notes that providing guidance could be "a bit tricky" given volatile reactions to peer companies’ guidance and DOGE, though specific details about these factors were not elaborated.
The research firm projects CACI management could guide to fiscal year 2026 revenue growth of 5% organic (7% total compared to consensus estimates of 8%), considering the company’s fiscal year 2025-2027 targets imply 5% organic growth in the next two years.
Jefferies anticipates a 20 basis point margin expansion to 11.4% in fiscal year 2026, with mix driving an adjusted earnings per share of $27.80.
In other recent news, CACI International has secured contracts worth approximately $638 million with the intelligence community, enhancing its role in national security. Additionally, CACI has upsized its senior notes offering to $1 billion, increasing it by $250 million from the initial announcement. The notes, carrying a 6.375% interest rate, are set to mature in 2033, with proceeds intended to reduce debt under its revolving credit facility. Meanwhile, Cantor Fitzgerald has maintained an Overweight rating on CACI shares, setting a price target of $535, and highlighting the company’s strong bookings as a buffer against potential downturns. The firm anticipates CACI’s fiscal performance to align with expectations for FY27 and possibly see growth in FY28. In related developments, the Trump administration is scrutinizing tech firms like CDW (NASDAQ:CDW) Corp, urging cost cuts in federal contracts, a move that could impact revenue streams. William Blair analyst Maggie Nola noted CDW’s government revenue saw a 1.0% year-over-year decrease in the first quarter of 2025. Despite these challenges, analysts believe companies with diversified revenue sources are better equipped to handle changes in government procurement.
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