CGI Group Cl A SV Gets a Buy Rating from Canaccord Genuity

By Carrie Williams

Wall Street analyst has provided a review for the Technology company today, but retained the same rating on the stock. CGI Group Cl A SV (TSX: GIB.A) received a Buy rating from Canaccord Genuity’s analyst Robert Young, with a C$74 price target.

Young commented:

“We expect CGI to remain active on M&A having executed on five acquisitions within the last five quarters, supported by its balance sheet flexibility, actively managed engagements, and targets in every strategic business unit. Larger transformational M&A remains a strategic priority. Management also remains confident on revenue contributions from IP, with a strong established position in financial and government verticals, with a focus on growing manufacturing, retail, and utilities. We believe that CGI’s strong position in the legacy IT environment and global footprint gives it a seat at the table to win higher value mandates, supporting continued organic growth.”

According to TipRanks.com, Young is a 5-star analyst with an average return of 15.9% and a 77.7% success rate. Young covers the Technology sector, focusing on stocks such as Dragonwave Inc, CounterPath, and Wi-Lan Inc.

Currently, the analyst consensus on CGI Group Cl A SV is Strong Buy and the average price target is C$74.50, representing a 12.6% upside.

In a report issued on May 11, TD Securities also reiterated a Buy rating on the stock with a C$77 price target.

CGI Group Cl A SV’s market cap is currently C$19.67B and has a P/E ratio of 18.

CGI Group, Inc. provides information technology and business process solutions. The company operates through following segments: Canada, United States, Nordics, France, the United Kingdom, ECS and Asia Pacific. Its services include systems integration and consulting, application management, technology management, and business process services. It also provides end to end information technology and business process services to clients in Canada, United States, Europe and Asia Pacific. The company was founded by Serge Godin and André Imbeau in June 1976 and is headquartered in Québec, Canada.

The company’s shares closed last Friday at $66.21, close to its 52-week high of $67.27.