On Thursday, Truist Securities updated its outlook on CACI International (NYSE:CACI), increasing the price target to $500 from the previous $450, while maintaining a Buy rating on the stock. The adjustment follows a recent investor meeting with CACI's CEO John Mengucci at the company's headquarters in Reston.
The firm's decision to raise the price target is based on a reinforced confidence in the company's financial projections for the fiscal year 2025. This confidence is largely attributed to CACI's acquisition of the $2 billion NASA NCAPS award earlier in June. The analyst from Truist Securities noted that CACI is currently trading at a roughly 10% discount compared to its peers in the Government Services sector.
The analyst believes that CACI's stock multiple is poised to increase as the company demonstrates organic growth that aligns with the higher end of the spectrum among public companies. This growth trajectory is expected to be bolstered by the recent contract win with NASA, which has added to the firm's optimistic stance on the company's performance.
CACI International, known for providing information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian customers, has shown a positive trend that aligns with the analyst's expectations for the sector.
In other recent news, CACI International has been the subject of several analyst upgrades. TD Cowen raised its price target on CACI's shares from $400 to $435, maintaining a Buy rating. This followed strong third-quarter results and significant awards for the company, which are expected to accelerate through fiscal year 2025. Wells Fargo (NYSE:WFC) also adjusted its financial outlook for CACI, increasing the price target from $410 to $468, while keeping an Overweight rating on the stock. The firm expects CACI's growth to outpace consensus estimates for fiscal year 2025.
Stifel adjusted its outlook on CACI, increasing the stock's price target to $440 from $430, and reiterated a Buy rating. This decision came after CACI reported third-quarter adjusted earnings that surpassed both consensus and Stifel's own estimates. The company posted adjusted earnings of $5.74 per share. In addition, Stifel increased CACI's stock price target to $430 from $390, highlighting CACI's success in securing new contracts and task orders.
CACI also reported robust first-quarter earnings that surpassed analyst expectations and revenue that exceeded consensus estimates. The company announced a third-quarter earnings per share (EPS) of $5.74, which was $0.11 higher than the analyst estimate of $5.63. Revenue for the quarter was also strong at $1.94 billion, outpacing the consensus estimate of $1.86 billion.
InvestingPro Insights
Following the positive outlook from Truist Securities, InvestingPro data and tips provide additional context for investors considering CACI International's stock. With a market capitalization of approximately $9.75 billion, CACI is trading at a P/E ratio of 24.91, which is slightly below its adjusted P/E ratio of 24.8 for the last twelve months as of Q3 2024. The company's revenue growth remains strong, with a 10.28% increase over the same period, reflecting its solid performance and potential for future growth.
From an investment standpoint, CACI's stock is noted for its low price volatility, a trait that might appeal to investors seeking stability. Additionally, the company's robust revenue growth of 11.08% in Q3 2024 and a gross profit margin of 32.72% in the last twelve months as of Q3 2024, underscore its financial health. Furthermore, InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period and predict the company will be profitable this year, which aligns with the positive sentiment expressed by Truist Securities.
Investors can explore more in-depth analysis and additional InvestingPro Tips by visiting InvestingPro. There are 11 more tips available that could further inform investment decisions. As an exclusive offer, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.