On Thursday, CACI International Inc . (NYSE:CACI) stock received an upgrade from Jefferies, with analysts there raising the company’s rating from Hold to Buy. The new price target for CACI International is set at $515, marking a significant increase from the previous target. The company, with a market capitalization of $10 billion, has demonstrated strong financial performance with a revenue growth of 13% over the last twelve months.
The upgrade comes as Jefferies analysts see multiple positive factors that could drive the company’s performance. They cited high visibility to mid-single-digit or better organic growth in the near term, with ramping contracts expected to contribute seven percentage points to fiscal year 2026 estimated revenue.
This growth is partly attributed to CACI’s limited exposure to Federal Civil markets outside of the Department of Homeland Security, which is only 6% compared to the 25% average, suggesting a reduced risk of funding pressure under current government economic policies.
Another contributing factor to the positive outlook is CACI International’s current valuation. The company’s shares are trading at a 25% discount to the S&P 500 index, compared to its three-year average discount of 15%. This valuation gap is seen as an opportunity by Jefferies, indicating potential for share price appreciation.
The revised price target of $515 reflects a three-point discount to the company’s three-year average discount to the S&P 500, based on CACI’s base earnings per share. The discount is intended to account for the fundamental risks associated with the company.
The upgrade and new price target by Jefferies suggest a confidence in CACI International’s growth prospects and its ability to outperform in the current market environment. Investors will be watching closely to see if CACI International can capitalize on the factors outlined by Jefferies and meet the new expectations set by the firm’s analysts.
InvestingPro data reveals the company maintains a healthy financial position with a strong Piotroski score of 8 and operates with moderate debt levels. For deeper insights into CACI’s financial health and growth potential, investors can access the detailed Pro Research Report, which provides comprehensive analysis of this and 1,400+ other top US stocks.
In other recent news, CACI International witnessed a series of significant developments. The company reported an 11% increase in Q1 revenue for fiscal year 2025, reaching nearly $2.1 billion. Consequently, CACI raised its revenue guidance for FY 2025 to between $8.1 billion and $8.3 billion. The company also completed the acquisition of Azure Summit Technology for $1.275 billion, partially financed by a $750 million Term Loan B Facility.
In terms of analyst ratings, Raymond (NS:RYMD) James upgraded CACI International from Market Perform to Outperform, setting a new price target of $475.00. However, Goldman Sachs downgraded the stock from Neutral to Sell, slashing its price target to $373. Baird maintained an Outperform rating with a price target of $640.00, despite concerns over the DOGE initiative.
CACI International extended its Master Accounts Receivable Purchase Agreement for another year, indicating operational stability. The company also secured a $290 million contract with the National Geospatial-Intelligence Agency to provide artificial intelligence and geospatial expertise. These developments follow Elon Musk’s comments, which led to a rise in government-services stocks, including CACI.
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