Canaccord Lowers CGI Inc. Price Target to C$150, Scotiabank Sets C$140 PT
Canaccord reduced CGI Inc.’s price target to C$150 from C$155 while retaining a Buy rating, citing expectations for robust free cash flow supported by organic growth and margin improvements. Scotiabank initiated coverage with a Sector Perform rating and C$140 target, highlighting sustained sub-100% book-to-bill ratios in its Systems Integration and Consulting segment.
1. Canaccord Lowers Price Target
On January 29, Canaccord cut its CGI Inc. price target to C$150 from C$155 while maintaining a Buy rating. The firm cited anticipated improvements in organic growth and margins, forecasting stronger free cash flow and balance sheet support.
2. TD Securities Maintains Buy Coverage
TD Securities reassigned coverage to analyst David Kwan on January 27, who upheld a Buy rating with a C$145 price target. TD highlighted CGI’s positioning for enhanced organic growth and margin expansion, and noted a favorable M&A environment could drive additional acquisitions.
3. Scotiabank Initiates Coverage with Neutral Stance
Also on January 27, Scotiabank analyst Kevin Krishnaratne began coverage with a Sector Perform rating and C$140 price target. The neutral view reflects CGI’s exposure to discretionary IT spending and consecutive quarters of book-to-bill ratios below 100%, indicating ongoing soft sales trends.