CACI International Stock Jumps on Jefferies Upgrade, New Navy Contract

CACI International (CACI) stock climbed more than 5% in morning trading Thursday, driven by a bullish analyst upgrade and a new multi-million dollar defense contract. The gains build on positive momentum from the company's strong first-quarter earnings report released last week.

Analyst Upgrade Cites Execution

Jefferies upgraded CACI shares to Buy from Hold and raised its price target to $725 from $700. The investment firm cited the company's consistent execution, high single-digit organic growth, and expanding profit margins that are now surpassing the historical 10–12% range for its peers.

In its note, Jefferies highlighted that CACI's recent high contract win rates are building a substantial funded backlog. This success is seen as accelerating the company's strategic shift toward a more technology-focused business model, a key factor in the positive reassessment.

Navy Contract Reinforces Tech Focus

Ad

Separately, CACI announced it had secured a five-year task order from the U.S. Navy with a potential value of up to $281 million. The contract with the Naval Surface Warfare Center Crane is for research, analysis, and prototype development aimed at enhancing electromagnetic spectrum operations.

This award reinforces investor confidence following last week's fiscal first-quarter 2027 results. In that report, CACI posted adjusted EPS of $7.66, well above consensus estimates, and expanded its EBITDA margin to 13.3%. The company also raised its full-year guidance for both revenue and adjusted EPS, signaling a strong outlook.

Market Context

The rally pushed CACI shares toward their 52-week high of $683.50. The move comes amid broadly constructive sentiment for the defense and government IT sector, with other firms like UBS and Stifel also recently affirming positive ratings or raising their price targets on the stock. The broader market provided a supportive backdrop, with major U.S. indices trading higher on the day.