Canada's CGI Q3 revenue slightly beats estimates
GIB•Outlook and growth drivers
CGI said a robust backlog and rising opportunity pipeline position it for continued profitable growth.
The company said clients are increasingly focused on secure, enterprise-scale AI and modernization, creating new partnership opportunities.
Result drivers included:
- Government sector awards — the company said strong government sector awards contributed to bookings and backlog.
- Client demand for AI and modernization — CGI said clients are increasingly focused on secure, enterprise-scale AI and modernization, creating new opportunities.
- Operational execution — the company attributed revenue growth, EPS accretion and cash generation to operational excellence.
Analyst coverage and valuation
The current average analyst rating on the shares is "hold," and the breakdown of recommendations is 7 "strong buy" or "buy," 5 "hold," and 1 "sell" or "strong sell."
The average consensus recommendation for the IT services and consulting peer group is "buy."
Wall Street's median 12-month price target for CGI Inc is C$117.00, about 16.2% above its July 28 closing price of C$100.71.
The stock recently traded at 11 times the next 12-month earnings versus a P/E of 11 three months ago.
