Cantor Fitzgerald maintains CACI stock Overweight with $535 target

On Thursday, Cantor Fitzgerald reaffirmed its positive stance on CACI International (NYSE:CACI) shares, maintaining an Overweight rating and a $535.00 price target. Currently trading at $461.06, CACI is considered slightly overvalued according to InvestingPro analysis. Analysts at the firm highlighted the company’s robust bookings as a mitigating factor against potential downturns, suggesting that while there may be some volatility in the new budget and outlay mechanics, CACI is expected to perform slightly below Street expectations for fiscal year 2026 (FY26), align with them for FY27, and potentially experience healthy growth in FY28. The company has shown strong momentum with a 11.6% return over the past year.

The firm’s analysis indicates that investor expectations vary widely, with some anticipating significant weakness and others accustomed to a more conservative outlook typical of Defense Prime companies in terms of growth and margins. Supporting the positive outlook, InvestingPro data shows that CACI maintains healthy financials with a gross profit margin of 33.16% and impressive revenue growth of 14.04%. Cantor Fitzgerald notes uncertainty regarding CACI’s ability to raise growth targets due to the unpredictable nature of government budgeting processes. However, the firm expresses increased confidence in the upside potential of CACI’s FY27 margin expectations, which are currently guided to be in the mid-11% range.

The analysts commend CACI for its longstanding focus on cost management, successful integration of Technology acquisitions, and strategic investments in key areas over the past decade. Despite concerns over growth, General Services Administration (GSA) reviews, and cost-plus conversion that may limit the stock’s return to previous highs, Cantor Fitzgerald believes CACI’s growth, margin, and capital deployment strategies are well-positioned to deliver a strong free cash flow per share (FCFPS) and drive outperformance. This is especially pertinent as investors seek stability amidst a worsening cyclical economic environment. For deeper insights into CACI’s financial health and growth prospects, including exclusive ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, CACI International Inc . reported its third-quarter fiscal year 2025 earnings, exceeding market expectations. The company announced an adjusted diluted EPS of $6.23, surpassing the projected $5.6, and reported revenue of $2.2 billion, higher than the anticipated $2.13 billion. This performance reflects an 11.8% year-over-year increase in revenue, with organic growth contributing significantly. CACI also raised its fiscal year 2025 guidance for both revenue and adjusted EPS. Analysts noted the strong demand in the national security sectors as a key factor in the company’s robust performance. Additionally, CACI highlighted its strategic focus on software-defined capabilities, aligning with recent government directives. The company continues to see positive demand signals from its customers, supporting its long-term growth strategy.

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