William Blair analyst Louie DiPalma has reiterated their bullish stance on CACI stock, giving a Buy rating on July 24.
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Louie DiPalma has given his Buy rating due to a combination of factors that suggest a positive outlook for Caci International. Despite a reduction in the ceiling of a significant Air Force contract, the impact on CACI’s revenue and backlog is expected to be minimal. This is because the company has a diversified portfolio and is a key player in the defense sector, which is anticipated to see a 13% increase in spending.
Furthermore, CACI’s counter-drone business is a major asset that appears to be undervalued by the market. The company’s CFO has also expressed confidence in its three-year outlook, indicating strong future performance. Additionally, based on a sum-of-the-parts analysis, CACI’s equity is estimated to be worth more than $580 per share, reinforcing the Buy recommendation.
In another report released on July 24, Truist Financial also maintained a Buy rating on the stock with a $550.00 price target.