GIB Should I Buy
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CGI Inc (GIB) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The technical indicators are bearish, and while the company has shown some financial growth, the stock is currently oversold with no immediate positive trading signals or strong catalysts to justify an entry point. Holding off for now is recommended.
The technical indicators for GIB are bearish. The MACD histogram is negative and expanding, indicating downward momentum. The RSI is at 14.748, signaling an oversold condition. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is trading near its support level of 74.817, with resistance levels at 80.322 and 85.826.
CGI has been recognized as a Leader in the 2026 Gartner Magic Quadrant for Banking Payment Hub Platforms. The company's All Payments platform enhances payment processing efficiency and customer satisfaction. Revenue for fiscal 2025 increased to CA$15.91 billion, indicating strong market demand.
Analysts have lowered price targets recently, with some citing softer sales trends and weaker book-to-bill ratios in the Systems Integration and Consulting segment. Gross margin dropped slightly YoY, and the MACD and moving averages indicate bearish momentum.
In Q1 2026, revenue increased by 7.74% YoY to $4.08 billion, net income rose by 0.78% YoY to $441.996 million, and EPS increased by 5.73% YoY to 2.03. However, gross margin dropped slightly by 0.37% YoY to 16.08%.
Analysts are mixed on GIB. TD Securities and Canaccord maintain Buy ratings with price targets of C$153 and C$150, respectively. However, CIBC downgraded the stock to Neutral with a lower price target of C$132, and Scotiabank assigned a Sector Perform rating citing weaker sales trends and discretionary IT spending exposure.
