
CGI Group (GIB) Stock Forecast & Price Target
CGI Group (GIB) Analyst Ratings
Bulls say
CGI has experienced a robust 11% year-over-year increase in managed services revenue, reaching $2.22 billion, indicating strong demand for its IT services across both government and private sectors. The company also reported a total free cash flow of $1.8 billion on a trailing twelve-month basis, which reflects a 1% year-over-year growth, along with a 3% increase in free cash flow per share. Additionally, the organic growth of managed services revenue at 6% when adjusted for currency fluctuations further highlights CGI's resilience and capability to expand its service offerings effectively.
Bears say
CGI has experienced a decline in margins, which fell 10 basis points year-over-year to 16.3% in the third quarter, attributed to the dilutive effects of recent acquisitions. Additionally, the company reported a sequential decline in bookings, aligning with prior estimates, indicating potential challenges in securing new contracts. Furthermore, the contribution of intellectual property (IP) to total revenue remained unchanged at 21% from the previous quarter but decreased from 23% in the same quarter of the prior fiscal year, suggesting a negative trend 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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