Government Funding And Technology Investments Will Drive Stronger Long-Term Performance

The analyst price target for CACI International increased from $576 to $622.73, a jump of nearly $47. Analysts cite the company’s strong quarterly performance, improved guidance, and consistent margin expansion as key drivers for the upward revision.

Analyst Commentary

Recent analyst reports on CACI International have reflected significant optimism following strong quarterly results and increased guidance. However, there are still areas of caution highlighted in the research community.

• Bullish analysts are encouraged by CACI’s robust quarterly performance, which exceeded relatively modest expectations and drove several upward price revisions.
• The company’s guidance upgrades and consistent growth in funded backlog are viewed as positive indicators for medium and long-term revenue visibility.
• CACI’s continued expansion of margins, especially as the company pivots toward advanced technologies, supports the thesis of superior execution and positions it for faster growth than peers.
• Despite broader market uncertainties, such as the ongoing U.S. government shutdown, CACI’s business mix and new contract wins are seen as insulating the company’s fiscal outlook and de-risking potential headwinds for the next fiscal year.

• Bearish analysts are cautious about valuation, noting that after recent price moves, the stock may have less upside compared to historical averages or sector peers.
• There is some concern that CACI’s recent strong performance may be largely factored into the current share price, limiting opportunity for further multiple expansion.
• The sector’s ongoing exposure to government spending cycles and administrative changes continues to be highlighted as a potential source of volatility and risk for growth projections.

What's in the News

• Stifel raised its price target for CACI International to $670 from $600, highlighting the company's extraordinary quarterly performance and its strong, de-risked outlook, even as government shutdown concerns persist (Stifel research note).
• CACI confirmed its earnings guidance for fiscal year 2026, expecting revenues between $9.2 and $9.4 billion, in line with previous guidance.
• The company announced a five-year, $73 million contract to modernize the Department of the Air Force's network for transmitting time-sensitive tactical and strategic intelligence data, enhancing secure situational awareness for the U.S. Department of Defense and allied partners.
• CACI was awarded a five-year task order worth up to $180 million to support Pacific Air Forces with network operations modernization. The initiative aims to bolster IT infrastructure and mission readiness across the Indo-Pacific region.
• CACI secured two contracts valued at approximately $124 million to deliver counter-uncrewed aircraft system (C-UAS) solutions to the Canadian Armed Forces, with a focus on detecting and defeating drone threats.

Valuation Changes

• Consensus Analyst Price Target: Increased from $576 to $622.73, reflecting heightened market confidence in future performance.
• Discount Rate: Decreased slightly from 7.55% to 7.42%. This signals a modest reduction in perceived investment risk.
• Revenue Growth: Risen marginally from 6.29% to 6.31% annualized. This points to a subtle improvement in future growth expectations.
• Net Profit Margin: Edged up from 6.09% to 6.13%. This suggests a modest boost in projected profitability.
• Future P/E: Increased from 22.71x to 23.64x, indicating investor willingness to pay a higher multiple for CACI’s anticipated earnings.