Analyst Note| Julie Bhusal Sharma |
Narrow-moat CGI reported top- and bottom-line results narrowly below our expectations to close out the third quarter of fiscal 2021. Despite the narrow miss, we view CGI’s business pipeline as healthy--an observation underscored by a book/bill ratio well above 100% and strong year-over-year bookings growth. As a result, we have confidence in the company’s medium- to long-term growth prospects, and with that in mind, we are maintaining our CAD 104 fair value estimate. With shares trading around CAD 114, we consider the company’s shares to be fairly valued.