Citi analyst Jonathan Raviv thinks CACI (CACI) shares will fall 5% today toward $150 following the company's competitive takeover bid for CSRA (CSRA) in light of accretion questions, valuation pressure caused by the changed narrative, and resulting high leverage. CACI is levering up more than expected, such that there's no room to boost the cash portion of the bid, Raviv tells investors in a research note.

Truist raised the firm's price target on CACI to $450 from $410 and keeps a Buy rating on the shares after its Q3 earnings beat. The stock's discount valuation reflects the perception of CACI as a sub-par organic grower despite the best trailing-12-month book-to-bill in the group, the analyst tells investors in a research note. CACI is one of the most interesting capital deployment stories, with net leverage down to 2.0-times and a long history of M&A value creation, the firm added.

RBC Capital lowered the firm's price target on General Dynamics to $320 from $325 after its Q1 earnings miss but keeps an Outperform rating on the shares. The company's revenue growth was driven by double-digit growth in Combat Systems, Marine Systems, and Aerospace, but while the management provided cautious comments on Q2 earnings and free cash flow, the set-up into the second half remains "very favorable", the analyst tells investors in a research note. RBC adds that it continues to see capital allocation as a key catalyst for General Dynamics.

Consensus $20.31. Raises FY24 revenue view to $7.5B-$7.6B from $7.3B-$7.5B, consensus $7.4B.

Reports Q3 revenue $1.94B, consensus $1.86B. "CACI's outstanding performance reflects the continued successful execution of our strategy. We're winning and delivering in the marketplace with differentiated capabilities, exceptional business development, and program execution," said John Mengucci, CEO. "Our third quarter results were strong across the board, including double-digit organic growth, margin expansion, $3.5 billion of awards, and record backlog. Our performance enables us to again raise fiscal year 2024 revenue and earnings guidance. We remain confident in our ability to drive long-term growth, increase free cash flow, and generate value for our customers and our shareholders."

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Reports Q1 revenue $10.7B, consensus $10.32B. "Our businesses delivered solid operating results in the quarter, growing revenue and backlog, while expanding margins, even as we awaited G700 certification," said Phebe N. Novakovic, chairman and chief executive officer. "In the Aerospace segment, the recent FAA certification of the Gulfstream G700 has enabled us to begin customer deliveries. This is a strong start to 2024 and we remain confident in our outlook."