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CGI Group (NYSE:GIB) was upgraded by equities researchers at Jefferies Group from a “hold” rating to a “buy” rating in a research report issued on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $43.00 price target on the stock, up from their previous price target of $34.00. Jefferies Group’s price objective would suggest a potential upside of 31.14% from the company’s current price.

The analysts wrote, “We are upgrading GIB to Buy from Hold because: 1) we believe cash flow concerns are overblown, and expect FCF performance to recover solidly in the current quarter, 2) recently robust bookings trends should drive gradual improvement in organic top-line growth, 3) any impacts from the healthcare.gov contract look manageable, 4) attractive valuation (11.0x C15 P/E vs. best comp CSC at 12.8x C15 P/E).”

CGI Group (NYSE:GIB) opened at 32.79 on Thursday. CGI Group has a one year low of $25.33 and a one year high of $39.47. The stock’s 50-day moving average is $31.42 and its 200-day moving average is $33.98. The company has a market cap of $10.087 billion and a P/E ratio of 16.71.

CGI Group (NYSE:GIB) last announced its earnings results on Wednesday, January 29th. The company reported $0.65 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.70 by $0.05. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.64 billion. During the same quarter last year, the company posted $0.44 earnings per share. CGI Group’s revenue was up 4.4% compared to the same quarter last year. Analysts expect that CGI Group will post $2.80 EPS for the current fiscal year.

Other equities research analysts have also recently issued reports about the stock. Analysts at CIBC upgraded shares of CGI Group from a “sector perform” rating to an “outperform” rating in a research note on Tuesday. Separately, analysts at Societe Generale upgraded shares of CGI Group from a “hold” rating to a “buy” rating in a research note on Thursday, January 30th. Finally, analysts at TD Securities upgraded shares of CGI Group to a “buy” rating in a research note on Thursday, January 30th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and nine have assigned a buy rating to the stock. CGI Group currently has a consensus rating of “Buy” and a consensus price target of $36.26.

CGI Group Inc (NYSE:GIB) is a Canada-based company, which provides information technology (IT) solutions, systems integration, IT outsourcing and business solutions.

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