CACI price target lowered to $450 from $625 at Barclays

Barclays analyst David Strauss lowered the firm’s price target on CACI (CACI) to $450 from $625 and keeps an Overweight rating on the shares. The firm notes its government services names have underperformed the market by 30% since the election on the potential impact of President-elect Trump’s efficiency initiative–Department of Government Efficiency or DOGE. Relative to the market, the group now trades at a 20%-25% discount, down from in line prior to the election. While Barclays sees limited downside to relative valuation for the group from here, current consensus that calls for 6%-8% EBITDA growth on average in 2025-2026 could be at risk on slowing O&M growth, which is where government services get the majority of its funding, along with potential pressure from DOGE initiatives.