02:45 PM EDT, 07/31/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our price target by CAD12 to CAD117, utilizing a P/E of 14x our CY 25 EPS estimate of CAD8.37, below CGI's three-year average (six-month forward) P/E multiple of ~18x, justified by elevated levels of economic uncertainty from tariffs and enhanced risks to U.S. federal government spending, where CGI is heavily exposed. We raise our FY 25 (Sep.) EPS view by CAD0.06 to CAD8.25 and lower our FY 26 estimate by CAD0.07 to CAD8.68. While CGI considers its U.S. federal government business to be showing encouraging signs of stabilization, we worry about further weakness and general instability. We also find FQ3's bookings total worrisome (TTM book-to-bill down to 106.7% vs 110.6% in the prior quarter), pointing to lower growth ahead. Managed Services (57% of bookings, 114% TTM book-to-bill) continues to look strong, on industrywide trends toward cost reduction and offshoring, but we think overall uncertainty and slow pipeline conversion will weigh on organic sales growth for at least a few more quarters.