CACI Stock Rallies on $281 Million Navy Contract and Jefferies Upgrade

CACI International Inc. (NYSE:CACI) shares rallied 5.6% on Monday, buoyed by the dual catalysts of a significant U.S. Navy contract award and a stock upgrade from investment firm Jefferies. The market's positive reaction highlights growing investor confidence in the national security contractor's strategic focus on high-margin electronic warfare and intelligence technologies.

Navy Electronic Warfare Order

CACI announced it had secured a new five-year task order, valued at up to $281 million, to support the U.S. Navy's Naval Surface Warfare Center Crane Division. Under the agreement, the company will provide advanced research, prototyping, and testing to mature next-generation electromagnetic warfare capabilities.

The program tasks CACI with strengthening electromagnetic spectrum operations and integrating artificial intelligence decision tools to counter increasingly sophisticated electronic threats. This contract win reinforces the company's pivot toward providing mission-critical, technology-based solutions rather than traditional government IT services.

Analyst Upgrade and Outlook

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Separately, Jefferies analyst Sheila Kahyaoglu upgraded CACI stock to "Buy" from "Hold" and raised the firm's price target to $725 from $700. The analyst note highlighted that a decade-long operational transformation is now translating into tangible results, including high-single-digit organic growth and margin expansion.

According to Jefferies, CACI is positioned to break out from the typical 10% to 12% margins observed across its peers. The firm's analysis points to a strong funded backlog, driven by high contract win rates, which provides multi-year revenue visibility.

Jefferies' valuation is based on several key projections for CACI:

• A price target of $725, valuing the company at roughly 13 times fiscal year 2 EBITDA of $1.45 billion.
• An expected 15% three-year compound annual growth rate (CAGR).
• A margin trajectory that is expanding toward 13%.