03:35 PM EDT, 05/01/2024 (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 lower our price target by CAD5 to CAD152, 18x our FY 25 (Sep.) EPS estimate, near peers and just above CGI's five-year average (~17x) on potential AI tailwinds. We raise our FY 24 EPS estimate by CAD0.04 to CAD7.73 and lower FY 25's by CAD0.04 to CAD8.42. CGI posted Mar-Q sales of CAD3.74B (+1% Y/Y) and EPS of CAD1.97 (+8%), near consensus. We continue to view CGI's government exposure (37% of Mar-Q sales) as a strength given the counter-cyclical properties of related spending, with sales up 6% Y/Y ex-FX. CGI's backlog remains sizeable, growing 1% Q/Q to CAD26.8B on CAD3.8B of Mar-Q bookings, with SI&C accounting for a slightly higher proportion of bookings (53%) than overall sales (46%) in what we view as a positive sign for more lucrative transformation spending (vs. cost optimization/managed services). AI-related bookings totaled over CAD200M, seemingly flat Q/Q, a weaker trend than industry-leading peers but still a positive, in our view, given many peers have not yet reported this information.