Stifel Analysts Increase CACI International Price Target to $500, Maintain Buy Rating

• CACI International Inc. (NYSE:CACI) has shown a strong performance with a gain of 11.31% over the past month, indicating investor confidence.
• The company's stock is projected to increase by 32.61%, suggesting it is undervalued with substantial growth potential.
• CACI's solid financial health is reflected in its Piotroski Score of 8, highlighting its strong financial foundations and management.

CACI International Inc. (NYSE:CACI) is a leading provider of information solutions and services in support of national security missions and government transformation for intelligence, defense, and federal civilian customers. Operating both in the United States and internationally, CACI offers a comprehensive range of services including enterprise IT, cybersecurity, and data analytics. It competes with other defense contractors like Leidos Holdings and Booz Allen Hamilton.

Over the past month, CACI has demonstrated a strong performance with a gain of 11.31%. This performance indicates that investors have confidence in the company's ability to deliver value. Despite a recent 3.67% decline over the last 10 days, this dip might present a strategic entry point for investors who believe in the stock's potential for a rebound.

CACI's growth potential is significant, with a projected increase of 32.61% in stock price. This suggests that the stock is undervalued and could rise to meet its target price of $495.4. Investors looking for growth opportunities might find CACI's current trading levels appealing, given the potential for substantial returns.

The company's strong fundamentals are highlighted by its Piotroski Score of 8. This score reflects CACI's solid financial health, indicating that the company is well-managed and financially stable. A high Piotroski Score is often seen as a positive indicator for investors seeking companies with strong financial foundations.

Overall, CACI International Inc. stands out as a promising investment option. Its recent performance, growth potential, and robust financial health make it an attractive choice for investors. The recent price dip could be a timely opportunity for those looking to invest in a company with a strong track record and future prospects.

• CACI International Inc (NYSE:CACI) is set to release its quarterly earnings with an estimated EPS of $5.25 and projected revenue of $2.04 billion.
• The company has a history of surpassing earnings expectations, with a previous quarter EPS of $5.95, exceeding the Zacks Consensus Estimate.
• CACI's solid financial ratios, including a P/E ratio of approximately 21.71 and a low debt-to-equity ratio of 0.12, underscore its financial health and investor confidence.

CACI International Inc (NYSE:CACI), a leading entity in the Zacks Computer - Services industry, specializes in national security solutions and technology. Employing 24,000 individuals, CACI is celebrated for its innovative culture, securing a position on the Fortune World's Most Admired Companies list. Competing with other technology and defense contractors, CACI is committed to delivering long-term value to its customers and shareholders.

CACI is poised to announce its quarterly earnings on January 23, 2025, after the market closes. Analysts have pegged the earnings per share (EPS) at $5.25, with anticipated revenue around $2.04 billion. Notably, CACI has consistently beaten expectations. In the preceding quarter, it reported an EPS of $5.95, surpassing the Zacks Consensus Estimate of $5.17 by 15.09%. This trend of outperforming estimates has been a constant over the past four quarters.

Supporting CACI's financial health are its robust financial ratios. The company's price-to-earnings (P/E) ratio stands at approximately 21.71, indicating investor willingness to pay $21.71 for each dollar of earnings. Its price-to-sales ratio is around 1.28, suggesting that investors pay $1.28 for every dollar of sales. Moreover, a low debt-to-equity ratio of 0.12 signals a strong balance sheet with manageable debt levels.

Strategic acquisitions, including those of Azure Summit and Applied Insight, have bolstered CACI's growth and profitability. President and CEO John Mengucci has expressed confidence in the company's momentum, leading to an upward revision of their fiscal year 2025 guidance. This positions CACI to achieve its three-year financial targets set during their Investor Day, continuing to deliver value to both customers and shareholders.

CACI International (NYSE:CACI) share rose more than 2% pre-market today after Raymond James analysts upgraded the stock from Market Perform to Outperform, assigning a price target of $475. The upgrade reflects the company’s attractive valuation and a favorable shift in its business mix toward high-value technology offerings.

CACI is currently trading at approximately 10.4 times its EBITDA, representing an unusually low discount relative to its historical sum-of-the-parts (SOTP) valuation and about 15% below its five-year average multiple. This undervaluation underscores the potential for a significant re-rating, particularly given the strategic evolution of its business.

Over the past eight years, CACI has transitioned its portfolio from being predominantly expertise-based—historically 80% of its operations—to focusing more heavily on technology-driven solutions. This shift has enhanced profitability, adding roughly 200 basis points to EBITDA margins. More recently, the company has demonstrated accelerated organic growth, further solidifying its position in the government IT sector.

According to the analysts, the positive changes in CACI’s business fundamentals suggest the potential for a return to the higher valuation multiples observed prior to the last election.