Caci International’s Strong Q3 Performance and Raised FY2025 Outlook Support Buy Rating

Mariana Perez Mora, an analyst from Bank of America Securities, maintained the Buy rating on Caci International (CACI – Research Report). The associated price target remains the same with $570.00.

Mariana Perez Mora’s rating is based on Caci International’s strong financial performance in the third quarter of fiscal year 2025, where the company exceeded earnings expectations. The reported adjusted earnings per share (EPS) of $6.23 surpassed both Bank of America’s estimate of $5.30 and the Bloomberg consensus of $5.50. This outperformance was largely attributed to higher-than-anticipated revenues and improved operating margins, with an operating margin of 9.1% compared to Bank of America’s 7.9% and Bloomberg’s 8.5%.
Furthermore, Caci International has raised the midpoint of its fiscal year 2025 outlook, projecting increased sales and adjusted EPS. The company also reported significant contract awards amounting to $2.5 billion in the third quarter, with a substantial portion representing new business. Despite some uncertainties in government spending and challenges in the defense services sector, the company’s robust pipeline of submitted bids and recent financial achievements support the Buy rating, with a price objective set at $570.00 USD.

In another report released on April 17, Barclays also maintained a Buy rating on the stock with a $450.00 price target.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CACI in relation to earlier this year.