Investing.com -- Shares of CACI International Inc (NYSE:CACI) rallied 5.6% on Monday following a twin catalyst of a new five-year U.S. Navy contract award and an analyst upgrade from Jefferies. The market reaction underscores building investor optimism around the national security contractor's strategic pivot toward higher-margin, mission-critical electronic warfare and intelligence solutions.
Under the newly secured task order, valued at up to $281 million, CACI will support the Naval Surface Warfare Center Crane Division in maturing next-generation electromagnetic warfare capabilities across operational environments. The program tasks the company with delivering advanced research, prototyping, and testing to strengthen electromagnetic spectrum operations, while integrating artificial intelligence decision tools designed to counter increasingly sophisticated electronic threats.
Against that backdrop, Jefferies analyst Sheila Kahyaoglu upgraded the stock to Buy from Hold, lifting her price target to $725 from $700. Kahyaoglu highlighted that a decade-long operational transformation is now translating into high-single-digit organic growth and margin expansion, positioning CACI to break out from the typical 10% to 12% margins observed across government IT peers and traditional defense primes.
Jefferies noted that elevated contract win rates have established an enduring funded backlog, which provides multi-year revenue visibility and accelerates the company's shift toward outcome-based technologies. The firm's $725 target values CACI at roughly 13 times fiscal year 2 EBITDA of $1.45 billion, driven by an expected 15% three-year compound annual growth rate and a margin trajectory expanding toward 13%.
Original Article
CACI rallies on $281M Navy electronic warfare order, Jefferies upgrade
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