UPDATE: Credit Suisse Downgrades CACI International to Neutral; Deteriorating Sales Growth

Credit Suisse lowers its rating on on CACI International CACI from Outperform to Neutral and reduces its price target from $68 to $53 on a deteriorating profile for sales growth. Credit Suisse notes, "Organic sales growth in FQ3'12 was -1.5%, marking the first quarter of organic decline in 5 years. Weakness was attributed to lower pass through of ODCs, which are low profit, subcontracted goods. However, we worry that this pressure will eventually move to the more profitable direct labor portion of the business, as it has already with certain peers. We reduce our 2012/13/14 forecasts from $5.92/$6.13/$6.66 to $5.65/$5.26/$5.42, but note that our projections do not incorporate future acquisitions, which could mitigate some downside." CACI closed at $61.42 on Wednesday.