Analyst Note| Julie Bhusal Sharma |
Narrow-moat CGI reported top-line results that were narrowly below our expectations to close out the second quarter of fiscal 2021. Despite the narrow miss this quarter, the company reported solid bookings and a book/bill ratio well above 100%, underscoring CGI’s healthy business pipeline. We expect the firm to continue its steady recovery from the pandemic-induced revenue slowdowns of fiscal 2020, and with that in mind, we are maintaining our CAD 104 fair value estimate. With shares trading around CAD 105, we consider CGI shares fairly valued.