
CGI Group (GIB) Stock Forecast & Price Target
CGI Group (GIB) Analyst Ratings
Bulls say
CGI has reported a robust 11% year-over-year increase in managed services revenue, reaching $2.22 billion, indicative of strong demand for its IT services across various sectors. The company's free cash flow on a trailing twelve-month basis has also shown a positive trend, rising by 1% year-over-year to $1.8 billion, with free cash flow per share increasing by 3% year-over-year. Furthermore, a 6% organic growth in managed services revenue, when adjusted for constant currency, underscores CGI's resilient performance and strategic positioning in the market.
Bears say
CGI's stock outlook is negatively impacted by a 10 basis point decline in margins to 16.3% for Q3, attributed to the dilutive effects of recent acquisitions. Additionally, the company experienced a sequential decline in bookings, which, while in line with estimates, suggests potential challenges in maintaining robust revenue growth. Furthermore, intellectual property (IP) revenue as a percentage of total revenue remained stagnant at 21%, reflecting a decrease from 23% in the same quarter of the previous fiscal year, indicating a potential slowdown in revenue diversification.
This aggregate rating is based on analysts' research of CGI Group and is not a guaranteed prediction by Public.com or investment advice.
CGI Group (GIB) Analyst Forecast & Price Prediction
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