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Investing.com - RBC Capital has reiterated its Outperform rating and Cdn$175.00 price target on CGI Group Inc (TSE:GIB.A) (NYSE:GIB).
The firm noted that CGI’s job postings declined 5% quarter-over-quarter, marking the fifth consecutive quarter of sequential declines following a 9% drop in the previous quarter.
Based on this trend in job postings, RBC Capital suggests that CGI’s organic growth is likely to remain negative in Q4/FY25.
Despite the near-term organic growth challenges, RBC highlighted CGI’s track record of creating shareholder value over the long term.
The firm expects mergers and acquisitions (M&A) and share buybacks to help sustain CGI’s adjusted earnings per share growth in the near term, supporting the maintained Outperform rating.
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