Truist Securities on Thursday kept a Buy rating on CACI International and held its $800 price target, while laying out a scenario in which the companys valuation multiple roughly doubles by 2029. The firm said the expectation for multiple expansion rests on a sustained shift toward higher-margin Mission Technology work, acquisitions that accelerate that mix change, and operating performance that outpaces peers.
At the time of the analysts note, CACI shares were trading at $586.89, reflecting a 73% gain over the last 12 months. Truist pointed to a current EV/EBITDA multiple in the mid-teens - the note references a baseline figure of 14.8 times EV/EBITDA - and modeled an outcome in which that multiple expands roughly two times by 2029.
The brokerage highlighted that CACI is posting a revenue growth rate of 10.4% and cited a contemporaneous EV/EBITDA multiple of 15.12 based on the latest available data. As Mission Technology increases its footprint within the business, Truist expects the company to merit a hybrid valuation treatment between Government Services and Defense Tech peers once Mission Technology accounts for 52% of sales and 63% of EBITDA.
Under Truists base forecast, the firm envisions CACI reaching a share price of $1,318 by 2029, which would represent a 123% increase from current levels. The brokerage also illustrated a bull-case pathway: in that scenario it sees revenue growing at a 14% compound annual rate through the period, with EBITDA compounding at 21% annually. That bull case assumes roughly 70 basis points of margin expansion per year and about two times of EBITDA multiple expansion, fueled by a mix of approximately 7 percentage points of annual organic growth and roughly 7 percentage points of inorganic growth concentrated in higher-margin product acquisitions.
Truist contrasted valuation norms within the defense and government services landscape, noting that Defense Tech comparables trade at about 31 times EV/EBITDA on average while traditional Government Services peers trade nearer to 10 times. The firm cited this dispersion as part of the rationale for applying a blended multiple as CACI shifts its business mix.
Independent analyst activity appears to reflect a generally positive tone: an InvestingPro note referenced in Truists coverage indicates seven analysts have raised earnings estimates for the upcoming period. Investors are directed to CACIs comprehensive Pro Research Report for deeper financial analysis.
Recent contract and analyst activity
Separately, CACI secured a five-year task order worth up to $250 million to enhance the U.S. Armys electronic warfare capabilities, a contract described as focused on improving spectrum dominance for military operations. The award was included in the brokers note as an example of the companys ongoing work in higher-end, technology-driven defense solutions.
Following CACIs fiscal second-quarter results, several brokerages adjusted their price targets. UBS raised its target to $787, citing the companys performance and emphasis on software-defined national security solutions. Stifel increased its target to $765, calling out stronger margins that helped offset revenue that was below expectations. Truist reiterated its $800 target and identified CACI as a favorite within the government sector.
The coverage also noted corporate activity elsewhere: TTM Technologies announced board changes with the retirement of Thomas Edman and John Mayer, who will be succeeded by Daniel G. Korte and Ryan D. McCarthy. The inclusion of those developments signaled broader board-level and strategic adjustments occurring across related firms.
Context for investors
For investors assessing CACI, Truists note frames the investment case around a pro forma change in business mix toward Mission Technology, the potential for targeted acquisitions to accelerate margin-rich growth, and relative valuation re-rating as the company aligns more closely with Defense Tech peers. The brokerage quantified both base and bull outcomes and highlighted the dispersion in comparable multiples as central to its valuation view.