Canaccord Lowers CGI Inc. (GIB) PT to C$150 While Maintaining Buy Rating

CGI Inc. (NYSE:GIB) is one of the most undervalued Canadian stocks to buy according to hedge funds. On January 29, Canaccord lowered its price target for CGI to C$150 from C$155 while maintaining a Buy rating.

On January 27, TD Securities transferred coverage of CGI to analyst David Kwan, who maintained a Buy rating and a C$145 price target. The firm expressed confidence that CGI is positioned to achieve enhanced organic growth and margin improvements, which are expected to support its robust free cash flow and balance sheet. Additionally, the firm noted that the current attractive environment for M&A could lead to continued activity in that area for the company.

On the same day, Scotiabank analyst Kevin Krishnaratne assumed coverage of CGI with a Sector Perform rating and a C$140 price target, citing the company’s exposure to discretionary IT spending as the reason for the neutral stance. The firm noted that CGI’s Systems Integration and Consulting segment has maintained book-to-bill ratios below 100% for several quarters, resulting in softer sales trends that are expected to persist through at least H1 2026.

CGI Inc. (NYSE:GIB) provides IT and business process services in Western & Southern Europe, the US, Canada, Scandinavia, Northwest & Central-East Europe, the UK, Australia, Germany, Finland, Poland, the Baltics, and the Asia Pacific.

While we acknowledge the potential of GIB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.