12:53 PM EDT, 05/02/2024 (MT Newswires) -- CGI reported Q2 adj. EPS marginally ahead of consensus on improved profitability, despite reduced organic growth.

"Although Q2 validates the resiliency in CGI's business model, management's tone suggests limited visibility to the timing and magnitude of a rebound in near-term organic growth and the reversal of industry headwinds," RBC's Paul Treiber writes.

Maintain Outperform, as valuation has reset lower, while CGI's build-and-buy model enables long-term resilient earnings growth.

Target cut to $163, from $170.

Price: 140.21, Change: +3.51, Percent Change: +2.57