In a Tough Macro Environment, CGI Finishes Fiscal 2022 With Strong Results; Raise FVE to CAD 119

Narrow-moat CGI reported top-line results largely in line with our expectations to finish off fiscal 2022. We continue to view the firm's business pipeline as healthy, an observation underscored by the company's continued broad-based strength and an annual book/bill ratio well above 100%. While the firm faces macroeconomic challenges, primarily in the form of currency-related headwinds, we reiterate our confidence in the company's medium- to long-term growth prospects. Factoring in slightly improved profitability assumptions and the time value of money following our valuation model roll, we are raising our fair value estimate to CAD 119 per share from CAD 110 per share and view the shares as fairly valued.