Goldman Sachs upgrades CACI International stock rating to Buy on tech pivot

Investing.com - Goldman Sachs upgraded CACI International (NYSE:CACI) from Sell to Buy on Wednesday, significantly raising its price target to $544.00 from $407.00. According to InvestingPro data, CACI’s stock has shown impressive momentum with a 39% gain over the past six months, while maintaining strong financial health with a "GOOD" overall rating.

The investment bank cited CACI’s strong positioning in the defense sector, demonstrated over the last two earnings cycles, which Goldman believes makes the company "the best positioned name in the group."

Goldman Sachs highlighted CACI’s valuation at 11.9X CY26 EV/EBITDA as less expensive than competitors Booz Allen (NYSE:BAH) Hamilton and Parsons (NYSE:PSN), despite what the firm views as "a stronger medium-term fundamental picture."

The upgrade reflects CACI’s strategic shift toward technology rather than expertise, with the company now offering advanced, software-defined technology products aligned with fast-growing budget areas including signals intelligence, electronic warfare, C4ISR, counter-UAS, and Space.

Goldman Sachs expects this revenue mix shift to help CACI continue winning business while reducing contract cancellation risks, as government customers increasingly favor "more tech-enabled, outcome-based work."

In other recent news, CACI International reported strong fourth-quarter 2025 earnings, significantly surpassing analysts’ forecasts. The company announced an earnings per share (EPS) of $8.4, exceeding the expected $6.6, which is a 27.27% surprise. Revenue for the quarter reached $2.3 billion, slightly above the projected $2.29 billion. Truist Securities raised its price target for CACI International to $575 from $550, maintaining a Buy rating. The firm highlighted CACI’s favorable fiscal year 2026 guidance, new business growth potential, and strategic positioning with the current administration. Raymond (NSE:RYMD) James reiterated its Market Perform rating, noting the company’s solid fourth-quarter results and fiscal 2026 guidance aligning with consensus revenue forecasts. CACI’s execution was described as "crisp," with its focus on national security remaining a strength. These developments reflect the company’s robust performance and strategic positioning in the market.

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