CACI price target raised to $555 from $535 at BofA

BofA analyst Mariana Perez Mora raised the firm’s price target on CACI to $555 from $535 and keeps a Buy rating on the shares after the company announced it has entered a definitive agreement to acquire Azure Summit Technology – an engineering firm offering radio frequency tech as well as other software defined technology across the electromagnetic spectrum – for $1.275B in cash. The firm has previously highlighted that national security services names typically do not participate in M&A for the realization of cost synergies but rather to gain exposure to the “3 C’s” of capabilities, customers, and contracts, but it appreciates CACI’s approach to “flexible and opportunistic capital deployment” and BofA thinks a higher multiple is justified for CACI given the accretive nature of this transaction.