Market Overview

Credit Suisse Upgrades CACI On Revenue Growth Potential

Share:

CACI International Inc (NYSE: CACI) seems poised to achieve sustainable organic revenue growth, given its trailing 12-month book to bill ratio and efforts to align itself more closely with high-priority customer mission areas, according to Credit Suisse.

The Analyst

Credit Suisse’s Robert Spingarn upgraded CACI from Neutral to Outperform, while raising the price target from $223 to $269.

The Thesis

CACI's organic revenue growth could accelerate to the mid-single-digit range after the first quarter of fiscal 2020, Spingarn said in a note. He added that the company may achieve faster revenue growth along with sustainable EBITDA margin expansion.

CACI may be able to generate EBITDA margins similar to its large cap competitors in fiscal 2020, and may even surpass them in fiscal 2021, the analyst mentioned.

Despite this potential, the stock is trading at a discount of around 34% to peers. Spingarn said there is upside to the current consensus estimates, given the company’s M&A focused capital deployment strategy and deal capacity of around $1.1 billion for fiscal 2020.

Spingarn further noted that the U.S. Department of Defense had awarded contracts worth $72 billion to small businesses in 2018, “a trend which has continued for many years and which naturally builds a pipeline of acquisition targets.”

Price Action

Shares of CACI climbed 1.2% to $211.73 at time of publishing on Tuesday.

Related Links:

Benzinga's Top Upgrades, Downgrades For August 20, 2019

A Peek Into The Markets: US Stock Futures Tumble Ahead Of Economic Data

Latest Ratings for CACI

DateFirmActionFromTo
May 2020Morgan StanleyMaintainsEqual-Weight
May 2020StifelMaintainsBuy
Apr 2020SunTrust Robinson HumphreyMaintainsBuy

View More Analyst Ratings for CACI
View the Latest Analyst Ratings

 

Related Articles (CACI)

View Comments and Join the Discussion!

Posted-In: Credit Suisse Robert SpingarnAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
BABACFRAMaintains216.0
ETNB of A SecuritiesDowngrades
HUYAB of A SecuritiesReiterates23.0
BABANomura InstinetMaintains249.0
PDDB of A SecuritiesReiterates71.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com