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Compiling comments that experts make about stocks while on public TV.

2017-01-11

Opinion for CGI Group (A) (GIB.A-T)

Signal Price Bias Subject Owned
TOP PICK $65.270 UNKNOWN NORTH AMERICAN - LARGE Yes

Half their business is outsourcing and the other half is consulting. The outsourcing part is long-term contracts with a nice recurring revenue stream. Their last acquisition was Logitech a few years ago, so their exposure to Europe is quite high. They are in a position to make another acquisition to grow a vertical market or geographically, and she thinks their preference is in the US. They are quite stringent on guidelines as to how much they are going to pay. Meanwhile they are actually seen some nice organic growth in the financial vertical. That industry is experiencing new competition in terms of new FinTech start-up companies, which is stirring the incumbents to increase productivity, cut costs and outsource, which all benefits CGI. On the whole digital arena, they provide fibre safe security. (Analysts’ price target is $70.55.)

Christine Poole
CEO & Managing Director, GlobeInvest Capital Management

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