CACI initiated with a Buy at UBS

UBS initiated coverage of CACI (CACI) with a Buy rating and $557 price target as the firm initiates coverage on on Government IT & Services stocks. Government austerity is not the firm’s base-case scenario in the current environment of elevated global geopolitical tension and rapid technological advancement, and the 20% de-rating in stocks since the election may ultimately prove overdone, but UBS sees more headline risk than re- rate potential over the next year and as a result, believes it is too early to broadly buy the selloff, the analyst tells investors in a research note. For CACI, UBS says DOGE is near-term headline risk, but the firm views the selloff as a longer-term opportunity.