What Happened?
Shares of defense, intelligence, and IT solutions provider CACI International (NYSE: CACI) jumped 3.2% in the morning session after it received a significant rating upgrade from Goldman Sachs, which changed its view from 'Sell' to 'Buy' and substantially raised its price target. The investment bank boosted its price target by over 33% to $544 from $407, citing CACI's strategic pivot towards offering advanced, software-defined technology products in high-growth defense sectors like signals intelligence, electronic warfare, and Space. Goldman Sachs called CACI "the best positioned name in the group," also noting its valuation appears less expensive than its competitors.
After the initial pop the shares cooled down to $489.80, up 2.6% from previous close.
Is now the time to buy CACI? Access our full analysis report here, it’s free.
What Is The Market Telling Us
CACI’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 3.6% on the news that Jefferies downgraded the stock to 'Hold' from 'Buy' and cut its price target, citing concerns over slowing growth. The investment firm pointed to concerns about the defense contractor's future growth. Jefferies noted that CACI's projected growth for fiscal year 2026 decelerated to an expected 4-6%, down from the 9% organic growth anticipated for fiscal year 2025. The firm also cited "moderate contract risk" tied to the company's Enterprise IT as a Service (EITaaS) offerings as a contributing factor. The analyst lowered the price target on the shares to $535 from $570.
CACI is up 19.2% since the beginning of the year, but at $489.80 per share, it is still trading 14.4% below its 52-week high of $572.44 from November 2024. Investors who bought $1,000 worth of CACI’s shares 5 years ago would now be looking at an investment worth $2,177.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
