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UPDATE: Cowen and Company Upgrades CACI International on Multiple Positive Factors

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In a report published Tuesday, Cowen and Company analyst Cai von Rumohr upgraded the rating on CACI International (NYSE: CACI) from Market Perform to Outperform, and raised the price target from $80.00 to $90.00.

In the report, Cowen and Company noted, “We expect healthy FY15 EPS/CFPS ramp on (1) flattish standalone profits, (2) Six3 accretion, & (3) maturity of CACI's dilutive convert. We're upgrading CACI to Outperform (from Market Perform) for a $90 price target (prev. $80) given its hefty valuation discount to peers. We assume 5% FY14-15E revenue drops due to the tough defense services environment; but this could be conservative given CACI's decent backlog (84% of FY14 guide midpoint vs. 65% at 6-30) & an $8B bid pipeline (75% for takeaway bids). Also, EBIT margins recovered from FY11's 6.2% low to 7.4% in FY13 as rev mix shifted to direct labor (41.5% of COGS vs. FY11's low of 35.1%), which is 4-5x more profitable than other direct costs. We expect margins to hold given (1) ongoing mix shift to direct labor (2) cuts in indirect costs, & (3) favorable timing reversal on a fixed-price contract.”

CACI International closed on Monday at $71.94.

Latest Ratings for CACI

DateFirmActionFromTo
Feb 2017Seaport GlobalInitiates Coverage OnBuy
Jan 2017Loop CapitalInitiates Coverage OnHold
Nov 2016Drexel HamiltonInitiates Coverage OnBuy

View More Analyst Ratings for CACI
View the Latest Analyst Ratings

Posted-In: Cai von Rumohr Cowen and CompanyAnalyst Color Upgrades Analyst Ratings

 

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