Research Alert: CFRA Upholds Buy Rating On Shares Of Caci International Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target by $75 to $650, 20.5x our FY 27 (Jun.) EPS estimate, above CACI's three-year historical forward P/E average (18.6x) and peers (12.1x). We trim our FY 26 EPS view by $0.50 to $28.18 reflecting transactions costs associated with the ARKA acquisition and keep FY 27's at $31.77. CACI raised its FY 26 revenue and EBITDA margin guidance, increasing revenue to $9.5B-$9.6B from $9.3B-$9.5B and EBITDA margin to 11.8%-11.9%. The company maintained free cash flow guidance of at least $725M. The ARKA acquisition adds $2B of noncompetitive franchise programs and expands CACI's space-based sensor capabilities, combining with existing land, air, and sea-based sensors to cover all domains. With 98% of its FY 26 revenue secured from existing programs, CACI demonstrates strong revenue visibility and is well-positioned to achieve its long-term financial targets. However, immediate-term caution is warranted due to a sluggish government award environment, as reflected in the quarter's 0.9x book-to-bill ratio.
