Cloud-AI Success and Increased Dividends Could Shift Investment Appeal for CGI (TSX:GIB.A)
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 1 hour ago0mins
CGI Developments: In December 2025, CGI announced significant advancements, including the launch of its ERP platform in Nevada, expanded use of ProperPay by Highmark, and achieving AWS Premier Tier Services Partner status, indicating a strong position in government modernization and healthcare payment integrity.
Investment Narrative: CGI's recent achievements support its narrative of growth in digital modernization, AI, and cloud services, although reliance on large government contracts poses risks. The company projects CA$17.9 billion in revenue and CA$2.3 billion in earnings by 2028, with a fair value estimate suggesting a potential upside.
Market Perspectives: Fair value estimates for CGI vary widely, from CA$136.69 to CA$1,382.16, highlighting differing investor views on the company's long-term earnings potential, particularly in light of AI-enabled cloud services.
Research and Analysis: Simply Wall St provides a comprehensive analysis of CGI's financial health and investment potential, emphasizing the importance of reviewing multiple perspectives and conducting thorough research before making investment decisions.
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Analyst Views on GIB
Wall Street analysts forecast GIB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GIB is 105.29 USD with a low forecast of 81.00 USD and a high forecast of 117.15 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 91.490
Low
81.00
Averages
105.29
High
117.15
Current: 91.490
Low
81.00
Averages
105.29
High
117.15
Jefferies
Buy
to
Hold
downgrade
$105 -> $81
2025-11-10
Reason
Jefferies
Price Target
$105 -> $81
2025-11-10
downgrade
Buy
to
Hold
Reason
Jefferies downgraded CGI to Hold from Buy with a price target of $81, down from $105. The company's organic growth is lagging peers due to its greater exposure to underperforming regions and verticals, the analyst tells investors in a research note. Jefferies believes CGI's industry trends are unlikely to improve in 2026, creating downside risk to consensus estimates.
Stifel
Suthan Sukumar
Buy
downgrade
$185 -> $160
2025-11-06
Reason
Stifel
Suthan Sukumar
Price Target
$185 -> $160
2025-11-06
downgrade
Buy
Reason
Stifel analyst Suthan Sukumar lowered the firm's price target on CGI to C$160 from C$185 and keeps a Buy rating on the shares.
CIBC
Outperformer
to
NULL
downgrade
$180 -> $149
2025-10-29
Reason
CIBC
Price Target
$180 -> $149
2025-10-29
downgrade
Outperformer
to
NULL
Reason
CIBC lowered the firm's price target on CGI to C$149 from C$180 and keeps an Outperformer rating on the shares.
CIBC
Stephanie Price
Outperformer -> NULL
downgrade
$183 -> $180
2025-07-21
Reason
CIBC
Stephanie Price
Price Target
$183 -> $180
2025-07-21
downgrade
Outperformer -> NULL
Reason
CIBC analyst Stephanie Price lowered the firm's price target on CGI to C$180 from C$183 and keeps an Outperformer rating on the shares.
See All Ratings
About GIB
CGI Inc. is a Canada-based independent information technology (IT) and business consulting services company. It delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. Its segments include Western and Southern Europe (France, Portugal and Spain); United States (U.S.) Commercial and State Government; U.S. Federal; Canada; Scandinavia, Northwest and Central-East Europe (primarily Sweden, Netherlands, Norway, Denmark and Czech Republic); United Kingdom (U.K.) and Australia; Germany; Finland, Poland and Baltics; and Asia Pacific Global Delivery Centers of Excellence (mainly India and Philippines) (Asia Pacific). It works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. It also has a presence in other European countries and Morocco.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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