
CGI Group (GIB) Stock Forecast & Price Target
CGI Group (GIB) Analyst Ratings
Bulls say
CGI has demonstrated robust growth in managed services revenue, which increased by 11% year-over-year to reach $2.22 billion, indicating strong demand for its IT services. Additionally, the company reported a slight increase in free cash flow, rising 1% year-over-year to $1.8 billion, alongside a 3% increase in free cash flow per share. These metrics reflect CGI's solid financial health and its ability to generate cash, positioning the company favorably within the IT services sector.
Bears say
CGI's margins declined by 10 basis points year-over-year to 16.3% in Q3, primarily due to the dilutive effects of recent acquisitions. Additionally, the company experienced a sequential decline in bookings, indicating potential challenges in securing new contracts, despite the decline being in line with estimates. Furthermore, the company’s intellectual property (IP) as a percentage of total revenue remained flat at 21%, down from 23% in the previous year, suggesting a stagnation in revenue diversification through proprietary offerings.
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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