Cautious Outlook on CGI Amid Mixed Financial Performance and Uncertain Demand Justifies Sell Rating

CGI (GIB – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Kupferberg from Bank of America Securities maintained a Sell rating on the stock and has a $94.00 price target.

Jason Kupferberg has given his Sell rating due to a combination of factors, primarily driven by CGI’s mixed financial performance and uncertain demand environment. The company’s recent quarterly results showed revenue growth and free cash flow below expectations, despite earnings per share aligning with forecasts. Management’s comments highlighted an unpredictable demand landscape, with clients focusing on managed services and downplaying the impact of certain external factors.
Additionally, CGI’s recent acquisitions and restructuring efforts indicate a strategic shift, but there remains skepticism about the company’s long-term organic growth potential. The ongoing macroeconomic pressures, particularly those related to tariffs, have contributed to demand uncertainty, affecting CGI’s business outlook. While there are positive signs in specific sectors like financial services, the overall cautious stance on CGI’s growth trajectory justifies the Sell rating.

According to TipRanks, Kupferberg is an analyst with an average return of -3.4% and a 49.19% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Cognizant, Fidelity National Info, and Block.