Reaffirming Buy on CGI: Accelerating Organic Growth, Resilient Margins, and M&A-Driven Upside to C$145 Target

In a report released yesterday, Daniel Chan from TD Cowen maintained a Buy rating on CGI, with a price target of C$145.00.

Daniel Chan has given his Buy rating due to a combination of factors related to CGI’s growth outlook, profitability, and financial flexibility. He expects CGI to deliver accelerating organic revenue growth and incremental margin gains, supported by a healthier IT services spending environment, as indicated by TD Cowen’s 2026 IT Services Spending Survey and corroborated by peers like Accenture and Infosys. Near-term, his forecasts call for solid top-line expansion aided by FX tailwinds and recent acquisitions, with adjusted EPS rising faster than revenue and broadly aligned with market expectations. While the temporary drag from the U.S. federal government shutdown is a headwind, he views it as transitory and is focused on signs that procurement activity is normalizing.
In addition, Chan emphasizes CGI’s strong free cash flow generation and robust balance sheet as key enablers of continued value-creating mergers and acquisitions. With sector valuations having compressed, he believes CGI is well positioned to capitalize on an attractive M&A landscape, adding scale and capabilities at appealing prices. Taken together—improving demand trends, resilient margins, disciplined capital deployment, and ongoing acquisition opportunities—these drivers underpin his confidence in CGI’s medium-term earnings trajectory and support the continuation of a Buy rating and C$145 target price.

In another report released on January 26, RBC Capital also maintained a Buy rating on the stock with a C$150.00 price target.

Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GIB in relation to earlier this year.