UPDATE: Jefferies Raises PT to $26 on CA Inc

Jefferies maintains its Hold rating on CA Inc (NASDAQ: CA) and raises its price target by $5 to $26 a share as company makes progress in capital reallocation.

Jefferies says, "Operationally, CA's F3Q results were relatively inline. But the focus is on the company's capital redeployment plan which will see a material increase with a target return to shareholders of $2.5bn through FY14. The magnitude of the commitment adds conviction to the sustainable cash flow growth outlook but also other strategic and operational plans including a more restrained acquisition agenda and more efficient operating structure."

CA closed at $22.82 a share on Tuesday.