After CACI (CACI) announced that it had agreed to buy L-3 Communication's National Security Solutions business for $550M, .Stifel says that the deal was done at an attractive price for CACI. The firm thinks the transaction will enable CACI to expand its market penetration in both the intel and cyber markets and provide it with the credentials to pursue larger enterprise-IT work. Stifel thinks the company is well-positioned to gain market share and raised its price target on the name to $119 from $105 while keeping a Buy rating.

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."

Stifel analyst Bert Subin raised the firm's price target on CACI to $430 from $390 and keeps a Buy rating on the shares. CACI "remains on a roll, winning various new contracts and task orders," says the analyst, who adds CACI remains the firm's top picks in the core government services sector. The firm has increased estimates for FY24, but "more so for FY25," to reflect new awards with additional upside potential from intel spending, the analyst tells investors.