CIBC Jacks to an Outperformer CIBC analyst Stephanie Price upgraded her rating on CGI Inc. (GIB-A-T) to “outperformer,” believing the company is well positioned as spending recovers in IT services. She also raised her price target to C$123 from C$110.
“CGI is well positioned in both government and commercial sectors as the business environment improves and organizations look to enhance digital offerings, including cybersecurity and cloud,” Ms. Price said in a note. “We see the stock as attractively valued at these levels, trading below its pre-COVID valuation despite an improving environment.”
She added that with cash reserves of $1.3 billion and $1.5 billion in available credit, the company has ample room to continue its M&A strategy. “CGI has had a goal to double the size of the business in the next five to seven years. In the current environment, we see this plan as more achievable, requiring 5%-6% organic growth per year and 5%-6% acquired growth,” she said.