TD Securities Upgrades CGI Group (NYSE:GIB) to Strong-Buy

Key Points

• TD Securities has upgraded CGI Group to a "strong-buy" rating, indicating increased confidence in the company's performance.
• Despite the upgrade, some analysts like Royal Bank of Canada have lowered their price targets, with CGI Group's consensus price target now at $148.25.
• The firm reported earnings of $1.52 per share for its last quarter, surpassing estimates, but revenue fell short of expectations, highlighting a mixed financial performance.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A was upgraded by equities research analysts at TD Securities to a "strong-buy" rating in a research report issued on Friday,Zacks.com reports.

A number of other analysts also recently issued reports on the company. Royal Bank Of Canada decreased their price target on CGI Group from $185.00 to $175.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. UBS Group decreased their target price on CGI Group from $112.00 to $105.00 and set a "neutral" rating for the company in a research note on Thursday, July 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of CGI Group in a report on Saturday, September 27th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, CGI Group presently has a consensus rating of "Buy" and a consensus price target of $148.25.

CGI Group Trading Up 1.7%

NYSE GIB opened at $91.75 on Friday. CGI Group has a 52 week low of $87.26 and a 52 week high of $122.79. The firm has a 50 day moving average of $94.43 and a two-hundred day moving average of $100.83. The company has a quick ratio of 0.94, a current ratio of 1.27 and a debt-to-equity ratio of 0.35. The stock has a market capitalization of $20.45 billion, a PE ratio of 16.96, a price-to-earnings-growth ratio of 1.54 and a beta of 0.73.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its quarterly earnings data on Wednesday, July 30th. The technology company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.01. The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $4.01 billion. CGI Group had a net margin of 11.01% and a return on equity of 18.53%. The company's revenue for the quarter was up 11.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.91 EPS. As a group, research analysts expect that CGI Group will post 5.79 EPS for the current fiscal year.

Hedge Funds Weigh In On CGI Group

A number of hedge funds have recently modified their holdings of the business. SVB Wealth LLC acquired a new position in shares of CGI Group in the 1st quarter valued at $25,000. Fifth Third Bancorp grew its position in CGI Group by 239.5% during the 1st quarter. Fifth Third Bancorp now owns 258 shares of the technology company's stock worth $26,000 after purchasing an additional 182 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its position in CGI Group by 292.6% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,005 shares of the technology company's stock worth $100,000 after purchasing an additional 749 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in CGI Group by 53.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company's stock valued at $152,000 after purchasing an additional 505 shares during the period. Finally, Creekmur Asset Management LLC raised its holdings in shares of CGI Group by 7,051.9% in the first quarter. Creekmur Asset Management LLC now owns 1,931 shares of the technology company's stock valued at $193,000 after buying an additional 1,904 shares during the last quarter. 66.68% of the stock is currently owned by hedge funds and other institutional investors.

CGI Group Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.

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