On Friday, TD Cowen took a positive stance on CACI International (NYSE:CACI) shares. The firm raised its price target to $480 from the previous $435 while maintaining a Buy rating. The adjustment reflects the analyst's expectations of strong performance from the defense contractor.
The firm's optimism is based on anticipated industry-leading quarterly and last twelve months (LTM) business-to-business (B2B) performance as of the June quarter. These indicators suggest that CACI International may achieve an organic growth rate exceeding 9% in the fiscal year 2025.
The new price target of $480 is predicated on a multiple of 14.5 times the calendar year 2024 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This valuation multiple is being applied to account for CACI's improving growth trajectory.
The analyst's commentary highlighted the potential for a valuation reset, implying a positive reassessment of CACI's worth based on its robust growth prospects. The company's strong performance metrics are expected to drive its organic growth going forward.
CACI International's stock price target upgrade is a direct result of the firm's projected business performance and growth potential, as identified by TD Cowen's analysis. The maintained Buy rating alongside the increased price target suggests confidence in the company's future financial success.
InvestingPro Insights
In alignment with the positive outlook from TD Cowen, InvestingPro data further strengthens the case for CACI International's robust financial health. With a market capitalization of $9.68 billion and a P/E ratio standing at 24.94, the company showcases a solid valuation. Moreover, the last twelve months as of Q3 2024 reveal a healthy revenue growth of 10.28%, underpinning the firm's strong performance metrics mentioned by analysts.
InvestingPro Tips also highlight CACI's low price volatility and moderate level of debt, which may appeal to investors looking for stable investment opportunities in the defense sector. Additionally, the company's stock is trading near its 52-week high, reflecting investor confidence and a strong return over the last three months. It's worth noting that CACI does not pay a dividend, which could be a consideration for income-focused investors.
For those seeking deeper insights and more tips, InvestingPro lists additional tips on CACI International's performance and potential. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. InvestingPro offers a total of 11 tips for CACI, providing a comprehensive analysis for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.