Record Quarter For CACI International, Jefferies Raises PT To $67

Jefferies & Company has published a research report on CACI International CACI after the company reported a record 2Q, raised guidance, and valuation that remains attractive. In the report, Jefferies writes "Another meaningful EPS beat and raise should translate into the potential for continued multiple expansion as CACI finally gets the respect that it deserves relative to its earning growth performance. Importantly, in FQ2, we again saw near double digit growth in direct labor, the best indicator of organic growth. FQ2 revenue grew nearly 10% y/y organically, beating our estimates and Street consensus. Higher pass-throughs (other direct costs, or ODCs, up 14% y/y) contributed some of the upside, although direct labor revenue also grew at a healthy clip (up 8% y/y). Operating margin expanded 80 bps y/y to 6.9%, driven in part by a higher mix of direct labor. Net net, EPS of $1.08 (versus consensus for $0.97) handily beat expectations, boosted in part by some one-time items and a modest tax rate benefit." Jefferies maintains its Buy rating and has raised the price target from $61 to $67. CACI International closed yesterday at $55.50.