01:24 PM EDT, 06/06/2025 (MT Newswires) -- RBC attended CGI's s Industry Analyst Summit which was held this on Thursday in Montreal.

Select highlights:

CGI called out the link between the long-term appreciation in its stock price and EPS growth. EPS is driven by the company's capital allocation, which balances organic investments, acquisitions and share repurchases.

CGI targets 50% of growth from organic initiatives and 50% from acquisitions. The company has identified 282 target metro markets globally, where it has a material footprint in 69 markets and an opportunity to expand in 127 new markets and 86 existing markets.

The company announced a $1 billion 3-year investment in AI capabilities in 2023. CGI sees its industry expertise as a differentiator in the development and deployment of AI-based solutions and managed services and noted some examples of successful customer AI deployments, including Circle K and NATO. AI will accelerate the shift to outcome-based pricing.

CGI sees itself as unique in the IT services market, in that it is both a product company and a services company. CGI is not selling AI separately, but focuses on software and managed services infused with AI that deliver tangible business outcomes and value to clients. Even if AI cannibalizes billable hours, CGI expects continued growth through uptake of its software and managed services. The company believes that governments, including the U.S. Federal government, that are currently cutting costs, will subsequently enter a re-build stage and will prioritize outcome-based solutions.

CGI is rated Outperform, with a $185 target.

Price: 146.99, Change: -0.03, Percent Change: -0.02