William Blair Upgrades CACI International (CACI) Stock to Outperform

CACI International Inc (NYSE:CACI) is one of the Top 10 Software and Technology Stocks to Buy Now.  William Blair analyst Louie DiPalma upgraded the company’s stock to “Outperform” from “Market Perform,” as reported by The Fly. The firm opines that the One Big Beautiful Bill Act features extensive drone funding. The firm’s analysis reflects that CACI International Inc (NYSE:CACI) happens to be one of the industry’s largest counter-drone system providers, describing this position as “under-the-radar.”

The firm opines that CACI International Inc (NYSE:CACI)’s shares provide valuation-focused investors an opportunity for drone exposure at a discount to peers. The company was awarded a 5-year task order valued at up to $66 million in order to continue helping the U.S. Navy’s Naval Sea Systems Command (NAVSEA) and the Naval Surface Warfare Center (NSWC) Carderock Division. CACI International Inc (NYSE:CACI) was also awarded a 5-year task order valued at up to $54 million to continue its support to the U.S. Army Product Manager Ground Sensors. The company is expected to provide current and future operational capability and efficiency across the life cycle of critical ground sensors, which include night vision, electro-optics, and thermal systems utilised by warfighters.

CACI International Inc (NYSE:CACI) is engaged in providing expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors.

Frontier Capital Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“The market volatility has created several opportunities to invest in companies at prices we find attractive, and thus we have initiated new positions in a variety of industries. Examples include CACI International Inc (NYSE:CACI) Amentum Holdings, Inc., Essential Properties Realty Trust, Inc., and DigitalOcean Holdings, Inc. CACI and Amentum both provide essential services to the Department of Defense and other governmental agencies. These companies recently saw a dramatic decline in their stock prices as investors became concerned that the newly formed Department of Government Efficiency (DOGE) would recommend cuts across all government areas. While pruning inefficient spending is likely, we believe that the mission critical nature of the projects on which CACI and Amentum work, together with the considerable cost the government would incur to bring this work in-house, are testaments to the value these companies provide. While some projects may be delayed, increased spending on defense and digital infrastructure should enable these companies to grow earnings during the next few years. Essential Properties owns and leases properties with a focus on regional and local mid-level markets. It is well capitalized and has a low percentage of leases rolling off over the next few years.”

While we acknowledge the potential of CACI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.