Analysts Release New Forecasts Following CGI Inc. (TSE:GIB.A) Second-Quarter Results

CGI Inc. (TSE:GIB.A) recently released its second-quarter results, showcasing a solid performance that met analyst expectations. With revenues of CA$3.7b and earnings per share of CA$1.83 aligning with estimates, investors are now looking towards the future of the company.

Analysts have updated their earnings model post-results, with forecasts indicating revenues of CA$14.7b in 2024, showing steady growth in line with the past year. Earnings per share are expected to increase by 2.1% to CA$7.37, slightly lower than previous estimates.

Despite the slight decrease in earnings per share forecasts, the consensus price target remains at CA$157, reflecting confidence in CGI’s performance. Analysts have varying views on the company, with price targets ranging from CA$127 to CA$175 per share, indicating differing perceptions of the business’s future.

Looking at the bigger picture, CGI’s revenue growth is expected to slow down compared to the industry average, with a 2.9% annual growth rate projected for the end of 2024. This contrasts with the industry’s expected 9.3% annual revenue growth, highlighting CGI’s position in the market.

Overall, analysts reconfirm that CGI is on track with their expectations, with no significant changes in sentiment post-results. While the company may face challenges in revenue growth compared to industry peers, the long-term trajectory of CGI remains a key consideration for investors.