Scotiabank Begins Coverage on CGI Group (NYSE:GIB)

Equities researchers at Scotiabank assumed coverage on shares of CGI Group (NYSE:GIB) (TSE:GIB.A) in a note issued to investors on Tuesday, Marketbeat reports. The brokerage set a “sector perform” rating on the technology company’s stock.

Other analysts have also issued research reports about the company. Jefferies Financial Group reaffirmed a “hold” rating and issued a $81.00 target price (down previously from $105.00) on shares of CGI Group in a report on Monday, November 10th. Weiss Ratings reissued a “hold (c-)” rating on shares of CGI Group in a research report on Monday, December 29th. TD Securities raised shares of CGI Group to a “strong-buy” rating in a research report on Friday, October 3rd. Cibc Captl Mkts cut shares of CGI Group from a “strong-buy” rating to a “hold” rating in a research note on Sunday, December 14th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of CGI Group in a report on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, CGI Group presently has a consensus rating of “Hold” and a consensus target price of $117.00.

CGI Group Stock Performance

Shares of GIB opened at $86.53 on Tuesday. The company has a market capitalization of $18.96 billion, a PE ratio of 16.45 and a beta of 0.59. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.99 and a quick ratio of 0.72. CGI Group has a one year low of $83.75 and a one year high of $122.79. The company’s fifty day moving average price is $91.01 and its 200 day moving average price is $92.12.

CGI Group (NYSE:GIB) (TSE:GIB.A) last issued its quarterly earnings results on Wednesday, November 5th. The technology company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.02. The company had revenue of $2.88 billion for the quarter, compared to the consensus estimate of $4 billion. CGI Group had a return on equity of 18.55% and a net margin of 10.41%.The firm’s revenue was up 9.7% compared to the same quarter last year. During the same period last year, the business posted $1.92 earnings per share. As a group, analysts expect that CGI Group will post 5.79 earnings per share for the current year.

Institutional Investors Weigh In On CGI Group

Institutional investors and hedge funds have recently bought and sold shares of the business. First Horizon Corp bought a new position in shares of CGI Group during the 3rd quarter worth about $29,000. EverSource Wealth Advisors LLC increased its stake in CGI Group by 53.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,452 shares of the technology company’s stock valued at $152,000 after acquiring an additional 505 shares during the period. Steigerwald Gordon & Koch Inc. acquired a new position in CGI Group in the third quarter worth about $144,000. Hughes Financial Services LLC acquired a new position in CGI Group in the third quarter worth about $174,000. Finally, Yousif Capital Management LLC lifted its stake in CGI Group by 8.1% during the second quarter. Yousif Capital Management LLC now owns 2,591 shares of the technology company’s stock worth $272,000 after purchasing an additional 195 shares during the period. Institutional investors own 66.68% of the company’s stock.

Trending Headlines about CGI Group

Here are the key news stories impacting CGI Group this week:

• Positive Sentiment: Q1 results show solid operating cash flow and backlog — CGI reported CA$4.08B revenue (up 7.7% y/y), CA$872M cash from operations (21.4% of revenue), bookings of CA$4.47B and backlog of CA$31.3B, supporting revenue visibility and free‑cash‑flow strength. PR: Q1 results
• Positive Sentiment: Strategic OpenAI alliance — CGI announced a global go‑to‑market collaboration with OpenAI to accelerate enterprise AI deployments, which could boost long‑term revenue mix and positioning in high‑growth AI services. PR: OpenAI collaboration
• Positive Sentiment: Share buyback program renewed — Board authorized renewal of the Normal Course Issuer Bid (subject to TSX approval), which supports EPS and signals management confidence in buybacks as capital allocation. PR: NCIB renewal
• Positive Sentiment: Quarterly dividend declared — CGI set a quarterly dividend (record Feb 18, payable Mar 20), maintaining cash return to shareholders (yield ~0.8%), modestly supportive for income investors.
• Neutral Sentiment: 50th‑anniversary messaging — Corporate branding and strategic narrative (“Building what’s next”) highlights long‑term positioning but is unlikely to move near‑term fundamentals. PR: 50 years
• Neutral Sentiment: Analyst coverage initiated at Scotiabank with a “sector perform” — adds liquidity/visibility but not a bullish catalyst. TickerReport: Scotiabank coverage
• Negative Sentiment: EPS and revenue missed some estimates — reported EPS of $1.51 missed consensus (~$1.55) and some outlets flagged revenue shortfalls versus expectations, which is the main driver of the stock weakness today. Zacks: earnings miss
• Neutral Sentiment: Earnings call materials available — the Q1 presentation and call transcript provide management detail on margin drivers, bookings quality and outlook; read for guidance cues. SA: earnings call transcript SA: presentation

CGI Group Company Profile

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.