Thursday’s analyst upgrades and downgrades
RBC Dominion Securities analyst Paul Treiber downgraded CGI Inc. to 'sector perform' from 'outperform' following a 10.8% share price drop after its Q2 earnings, citing sustained market pessimism around AI-related headwinds to growth and pricing. Despite CGI's low valuation at 9.6 times NTM P/E and in-line adjusted EPS, concerns over flattening organic growth have led to reduced growth estimates and a lowered target price of $100. Other analysts also revised their targets downward, though some maintain positive ratings, expecting near-term improvement as non-AI headwinds ease.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountInside the Market’s roundup of some of today’s key analyst actionsIn response to the 10.8-per-cent drop in CGI Inc.’s (GIB.A-T) share price following its second-quarter earnings release on Wednesday, RBC Dominion Securities analyst Paul Treiber thinks “the market is becoming increasingly pessimistic in light of AI uncertainty.” “Even though CGI’s shares are trading at multi-year valuation lows, we believe the probability of an upward valuation re-rating has declined,” he added.Accordingly, as the Montreal-based business and technology consulting firm’s valuation “appears increasingly likely to remain at trough levels,” Mr.
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