Jefferies upgrades CACI International stock rating on growth outlook

On Monday, investment firm Jefferies upgraded CACI International's stock rating to Buy from Hold and increased its price target to $725, up from $700. CACI's share price currently sits at $634, with a market capitalization of $14.08 billion. The source cites the company's consistent performance, ten years of foundational work, high single-digit organic growth, and margins expanding beyond 10% to 12%.

Recent contract wins have created a robust funded backlog, positioning CACI for acceleration in technology-first, outcome-based solutions. The $725 price target represents approximately 13 times fiscal year 2 EBITDA of $1.45 billion, assuming a 15% three-year compound annual growth rate. While some analysts consider CACI overvalued, the company has shown strong returns over the past three months.

CACI reported its first-quarter fiscal 2027 earnings, surpassing earnings per share expectations with $7.66, and revenue growth of 8.2% year-over-year to $2.47 billion. Despite missing Wall Street's revenue forecast, CACI raised its full-year outlook, signaling a positive trajectory for the upcoming fiscal year.