With its talent for streamlining operations, CACI International could be a key beneficiary the Department of Government Efficiency ‘s cost-cutting efforts, according to Bank of America. The firm reiterated its buy rating on the professional services stock on Friday, with a $625 price target, a forecast that implies more than 48% upside from Thursday’s $421.64 close. Analyst Mariana Perez Mora said the pick is somewhat contrarian given that investors see the company, which is involved in modernizing the federal government’s information technology systems, as a potential causality DOGE’s cuts. Instead, she argued that CACI will actually help simplify some of work DOGE and Elon Musk are doing. While shares have advanced about 24% over the past year, the stock has fallen more than 6% since Election Day. CACI 1Y mountain CACI International stock. “We anticipate that meeting the stated objectives of the DOGE will require the expertise and support of CACI and other defense services names,” Perez Mora said, citing several contracts the company has that aimed at improving efficiency. She added that the firm is “strongly poised to benefit from the movement toward solutions-based contracts with commercial terms (fixed price vs. cost-plus) as well as outsourcing trends for modernization efforts.” The analyst also lauded the company’s recent quarterly results, which surpassed analyst estimates on the top and bottom line. CACI raised its 2025 earnings forecast to a range of $23.87 to $24.76 per share, citing a strong backlog of projects. “We see CACI’s strong 2QFY25 performance and robust pipeline of opportunities as a testament to the strength of the company’s portfolio,” the analyst said, setting a 2025 earnings estimate of $24.50 per share.
