Royal Bank Of Canada Reaffirms Outperform Rating for CGI Group (NYSE:GIB)

Key Points

• Royal Bank of Canada reaffirmed an Outperform rating on CGI Group with a $150 price target, implying roughly a 107.6% upside from the stock's prior close.
• Analyst coverage is mixed: MarketBeat shows an average rating of "Hold" with a consensus target of $112 (1 Strong Buy, 1 Buy, 4 Hold, 1 Sell), contrasting with RBC's bullish view.
• CGI's latest quarter missed expectations—EPS of $1.51 vs. $1.55 est (down $0.04) and revenue of $2.96B (though up 7.7% year-over-year); the stock recently traded around $72.25, near its 52-week low.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A's stock had its "outperform" rating reiterated by Royal Bank Of Canada in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $150.00 price objective on the technology company's stock. Royal Bank Of Canada's price target would suggest a potential upside of 107.61% from the company's previous close.

GIB has been the topic of a number of other reports. Canadian Imperial Bank of Commerce cut CGI Group from a "strong-buy" rating to a "hold" rating in a report on Sunday, December 14th. TD Securities raised shares of CGI Group to a "strong-buy" rating in a research note on Wednesday, January 28th. Weiss Ratings cut shares of CGI Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th. Finally, Scotiabank assumed coverage on CGI Group in a research note on Tuesday, January 27th. They set a "sector perform" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $112.00.

CGI Group Trading Down 1.2%

Shares of NYSE:GIB opened at $72.25 on Wednesday. The company has a market cap of $15.52 billion, a P/E ratio of 13.53 and a beta of 0.58. CGI Group has a 52-week low of $69.96 and a 52-week high of $110.07. The stock's 50-day moving average is $76.42 and its 200-day moving average is $85.23. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.70 and a current ratio of 0.94.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last posted its quarterly earnings results on Wednesday, January 28th. The technology company reported $1.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.55 by ($0.04). CGI Group had a net margin of 10.25% and a return on equity of 18.61%. The firm had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $4.08 billion. During the same quarter in the prior year, the business earned $1.97 EPS. CGI Group's revenue was up 7.7% on a year-over-year basis. Equities research analysts predict that CGI Group will post 5.79 earnings per share for the current year.

Hedge Funds Weigh In On CGI Group

Several institutional investors and hedge funds have recently modified their holdings of the company. Mediolanum International Funds Ltd raised its stake in shares of CGI Group by 35.1% during the third quarter. Mediolanum International Funds Ltd now owns 67,190 shares of the technology company's stock valued at $5,972,000 after purchasing an additional 17,448 shares during the period. Kepler Cheuvreux Suisse SA purchased a new stake in shares of CGI Group in the 3rd quarter valued at approximately $6,498,000. Beutel Goodman & Co Ltd. grew its holdings in shares of CGI Group by 13.0% during the 2nd quarter. Beutel Goodman & Co Ltd. now owns 3,452,820 shares of the technology company's stock valued at $361,881,000 after acquiring an additional 397,005 shares in the last quarter. Syon Capital LLC boosted its position in CGI Group by 69.7% during the third quarter. Syon Capital LLC now owns 4,260 shares of the technology company's stock worth $380,000 after purchasing an additional 1,749 shares during the period. Finally, Rossby Financial LCC boosted its holdings in CGI Group by 49,840.0% in the 3rd quarter. Rossby Financial LCC now owns 4,994 shares of the technology company's stock valued at $449,000 after purchasing an additional 4,984 shares during the period. Hedge funds and other institutional investors own 66.68% of the company's stock.

CGI Group Company Profile

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.

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