Cautious Hold Rating on Caci International Amid Slowing Growth and Valuation Concerns

Jefferies analyst Sheila Kahyaoglu downgraded the rating on Caci International to a Hold today, setting a price target of $353.00.

Sheila Kahyaoglu’s rating is based on a combination of factors that suggest a cautious approach to Caci International’s stock. The company’s valuation has returned to its historical average, and its future growth prospects appear to be slowing. Specifically, the forecasted revenue growth for FY26 is expected to decelerate to 5%, a significant drop from the 9% organic growth observed in FY25. This slowdown is partly due to moderate contract risks associated with the EITaaS program.
Additionally, while there are some positive financial aspects, such as the potential benefit from the reversal of Section 174 payments, the overall outlook remains mixed. The company’s free cash flow conversion is expected to remain strong, but the stock’s current trading premium compared to its historical average and peers suggests limited upside potential. As a result, Kahyaoglu has downgraded the stock to a Hold rating, reflecting these balanced considerations.

Based on the recent corporate insider activity of 57 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.