CGI Kicks Off Fiscal 2022 With a Strong Quarter; Maintain FVE at CAD 110; Shares Fairly Valued

We are maintaining our CAD 110 fair value estimate for CGI after the firm reported a strong first quarter of fiscal 2022, largely in line with our estimates. We continue to have a favorable view of the firm's business pipeline and fundamentals. Our outlook is strengthened by CGI's broad-based strength across its verticals and a book/bill ratio well above 100%. In addition, we believe CGI's narrow economic moat, based on its sticky product portfolio and intangible assets, will allow the firm to deliver continued shareholder value. We continue to view the firm's shares as fairly valued.