CGI (TSE:GIB.A) Hits New 52-Week Low on Analyst Downgrade

Key Points

• CGI hit a new 52-week low after Stifel Nicolaus cut its price target from C$160 to C$128; the stock traded as low as C$94.54 and last at C$95.17.
• Several brokers have reduced targets (recent range C$112–C$153), but consensus remains a Moderate Buy with an average target of C$140.36, implying notable upside from current prices.
• Fundamentals show a market cap of C$19.45B, a PE of 12.14, quarterly EPS of C$2.27 on C$4.16B revenue, and a small annual dividend yield of 0.8%.

CGI Inc (TSE:GIB.A - Get Free Report) NYSE: GIB's share price reached a new 52-week low on Wednesday after Stifel Nicolaus lowered their price target on the stock from C$160.00 to C$128.00. Stifel Nicolaus currently has a buy rating on the stock. CGI traded as low as C$94.54 and last traded at C$95.17, with a volume of 98522 shares trading hands. The stock had previously closed at C$100.64.

A number of other analysts also recently weighed in on the company. BMO Capital Markets decreased their price target on CGI from C$137.00 to C$122.00 and set an "outperform" rating on the stock in a research note on Monday. Scotiabank decreased their price target on CGI from C$140.00 to C$120.00 and set a "sector perform" rating on the stock in a research note on Friday, April 24th. Canaccord Genuity Group decreased their price target on CGI from C$155.00 to C$150.00 and set a "buy" rating on the stock in a research note on Thursday, January 29th. Canadian Imperial Bank of Commerce decreased their price target on CGI from C$132.00 to C$112.00 in a research note on Friday, April 17th. Finally, TD Securities lifted their price objective on CGI from C$145.00 to C$153.00 and gave the stock a "buy" rating in a report on Thursday, January 29th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of C$140.36.

CGI Price Performance

The stock has a market cap of C$19.45 billion, a PE ratio of 12.14, a P/E/G ratio of 2.24 and a beta of 0.09. The company has a debt-to-equity ratio of 34.24, a current ratio of 1.16 and a quick ratio of 0.97. The business has a fifty day moving average of C$100.54 and a 200 day moving average of C$114.56.

CGI (TSE:GIB.A - Get Free Report) NYSE: GIB last issued its quarterly earnings results on Wednesday, April 29th. The company reported C$2.27 EPS for the quarter. The firm had revenue of C$4.16 billion during the quarter. CGI had a return on equity of 19.51% and a net margin of 11.51%. Sell-side analysts anticipate that CGI Inc will post 8.3679245 earnings per share for the current year.

CGI Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 20th were issued a $0.17 dividend. The ex-dividend date of this dividend was Wednesday, February 18th. This represents a $0.68 dividend on an annualized basis and a yield of 0.8%. CGI's dividend payout ratio is currently 6.03%.

CGI Company Profile

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results.

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