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Investing.com - Raymond (NSE:RYMD) James downgraded CACI International (NYSE:CACI) from Outperform to Market Perform on Tuesday, citing the stock’s strong performance since its previous upgrade. According to InvestingPro data, CACI’s current analyst consensus remains bullish at 1.44 (Strong Buy), with price targets ranging from $300 to $576.
The defense contractor’s shares have risen approximately 25% since Raymond James upgraded the stock in January, significantly outperforming the S&P 500’s 6% gain during the same period.
Raymond James noted that CACI’s national security focus, which comprises about 94% of its sales, combined with strong execution, has pushed the stock to the firm’s previous price target.
The downgrade reflects Raymond James’ view that CACI shares are "due for a pause" as other companies in the sector narrow the relative multiple and performance gap over the coming quarters.
CACI International is expected to report its fiscal year 2025 results in August, having closed its financial year in June.
In other recent news, CACI International has been upgraded by William Blair from Market Perform to Outperform due to its strong position in the counter-drone system market. This upgrade follows significant funding from the One Big Beautiful Bill Act, which includes $1.9 billion for counter-drone systems. Additionally, Jefferies has raised its price target for CACI International to $570, maintaining a Buy rating. Jefferies anticipates a 20 basis point margin expansion and adjusted earnings per share of $27.80 for fiscal year 2026.
Furthermore, CACI International has secured approximately $638 million in contracts with the intelligence community, enhancing its role in national security efforts. The company also announced an upsizing of its senior notes offering to $1 billion, with the proceeds intended to reduce outstanding amounts under its credit facility. Meanwhile, a Wall Street Journal report highlighted potential challenges for CACI and other tech firms as the U.S. government seeks to cut federal contract spending. Despite these challenges, analysts suggest that companies with diversified revenue streams may better navigate the evolving landscape.
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