
CGI Group (GIB) Stock Forecast & Price Target
CGI Group (GIB) Analyst Ratings
Bulls say
CGI reported a notable year-over-year increase in managed services revenue, which rose by 11% to reach $2.22 billion, reflecting strong demand across its IT service offerings. Additionally, the company demonstrated robust performance in free cash flow, with total free cash flow up 1% to $1.8 billion on a trailing twelve-month basis, while free cash flow per share increased by 3% year-over-year. This combination of revenue growth and improving cash flow metrics underpins a strong financial position and positive outlook for CGI.
Bears say
CGI's margins have experienced a decline of 10 basis points year-over-year, dropping to 16.3% in Q3, attributed primarily to the dilutive impact of recent acquisitions. Additionally, the company has seen a sequential decrease in bookings, which, while in line with estimates, raises concerns about future revenue growth and client demand. Furthermore, intellectual property as a percentage of total revenue remained stable at 21%, yet this metric decreased from 23% in the prior fiscal year, suggesting potential challenges in innovation or value generation moving forward.
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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