On Monday, TD Cowen showed confidence in CACI International Inc (NYSE:CACI), raising its price target on the company's stock to $435 from the previous $400 while maintaining a Buy rating.
The decision comes after CACI International reported robust third-quarter results and received significant awards, signaling a promising outlook. According to TD Cowen, the company's three major wins are expected to accelerate through the fiscal year 2025, which could lead to increased estimates by Wall Street for that period.
TD Cowen highlighted the company's consistent performance as a key factor in the revised price target. The analyst firm believes that CACI's steady results could warrant a higher valuation, suggesting a potential upside for investors.
CACI International's recent achievements and the anticipated growth through FY25 have positioned the company favorably in the eyes of TD Cowen. The firm reiterated its Buy rating on the stock, now with a price target that implies a 13.7x TEV/EBITDA ratio.
InvestingPro Insights
Following the positive outlook from TD Cowen on CACI International Inc (NYSE:CACI), InvestingPro data and tips provide additional context to the stock's potential. CACI's market capitalization stands robust at $9.25 billion, underscoring its significant presence in the industry. The company's P/E ratio is currently at 23.73, which, when compared to its revenue growth of 10.28% over the last twelve months as of Q3 2024, might suggest a relatively high valuation. However, the company's strong revenue growth and consistent gross profit margin of 32.72% could be seen as justifying factors for the valuation.
Two InvestingPro Tips that stand out are that CACI is trading near its 52-week high, with the price at 99.57% of this peak, and has shown a strong return over the last three months with an 18.77% price total return. These tips highlight the stock's recent performance and suggest that investor sentiment has been bullish. Additionally, analysts have revised their earnings upwards for the upcoming period, providing further evidence that the company's outlook is positive.
For investors seeking a deeper dive into CACI's financials and prospects, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available that could help in making a more informed investment decision. To access these tips and benefit from the full range of features, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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