On Tuesday, Wells Fargo adjusted its financial outlook for CACI International (NYSE: CACI), a company specializing in information technology and professional services. The firm increased the price target for CACI from $410.00 to $468.00, while reiterating its Overweight rating on the stock. This adjustment reflects an optimistic view of the company's future performance, particularly looking beyond the fiscal year 2024.
The firm's analysts anticipate CACI's growth to outpace the consensus estimates for fiscal year 2025. This expectation is grounded in the company's recent program wins and the potential for continued growth, despite the conservative 2% growth projection based on the upper end of CACI's own fiscal year 2024 guidance. The low percentage of contracts up for recompetition, at just 1%, also supports this positive outlook.
Wells Fargo has made a slight revision to its earnings per share (EPS) estimate for CACI for fiscal year 2024, decreasing it from $20.55 to $20.47. However, the estimate for fiscal year 2025 has been marginally increased. These revisions are part of a broader financial analysis leading to the new price target.
The new price target of $468.00 is derived from applying an 18x multiple to the firm's fiscal year 2026 EPS estimate for CACI. This multiple is consistent with the current trading levels of CACI shares based on consensus estimates for fiscal year 2025. The Overweight rating indicates that Wells Fargo maintains a positive stance on CACI's stock, suggesting confidence in the company's ability to perform well in the market.
InvestingPro Insights
As CACI International (NYSE: CACI) continues to make headlines with its revised financial outlook by Wells Fargo, real-time data from InvestingPro provides additional context for investors. With a market capitalization of approximately $9.03 billion, CACI is trading at a P/E ratio of 23.12, reflecting investor sentiment on its earnings capability. Notably, the company's revenue has grown by 10.28% over the last twelve months as of Q3 2024, underscoring the firm's optimistic view of CACI's future performance.
Investors should note that CACI is trading near its 52-week high, with a price that is 99.82% of the peak, signaling a strong market confidence. Moreover, the stock has seen a robust return of 17.83% over the last three months, highlighting the positive momentum mentioned by Wells Fargo. Two InvestingPro Tips might be particularly insightful for those closely following CACI: Analysts have revised their earnings upwards for the upcoming period, and the company is expected to be profitable this year, reinforcing the bullish outlook presented.
For those seeking a deeper dive into CACI's financials and future prospects, InvestingPro offers additional tips and metrics. Discover these insights and utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to an array of professional investment tools and data.
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