Get defensive with these Canadian tech stocks, says Cormark

cgi group

Many of Canada’s best technology names are mature companies with recurring revenue streams that make them particularly attractive in the current market downturn, says Cormark analyst Richard Tse. In a research report to clients this morning, Tse talked about a phenomenon that has seen certain companies that performed well in the bull market showing resilience […]

Look for continued margin improvement at CGI Group, says Paradigm

cgi group

Improved margins in the U.S. market helped drive a good quarter for CGI Group (TSX:GIB.A), and additional synergies from the company’s acquisition of Logica will continue to power its operating leverage, says Paradigm Capital analyst Gabriel Leung. Yesterday, before market, CGI reported its Q3, 2014 results. The company earned $225.1-million on revenue of $2.7-billion, a […]

CGI Group is still undervalued, says Cormark analyst Tse

cgi

The valuation gap between CGI Group (TSX:GIB.A) and its more expensively priced peers will begin to tighten because the value creation from its “contrarian” acquisition of Logica will ultimately outpace expectations, says Cormark analyst Richard Tse. Next Wednesday, before market open, CGI will report its Q3, 2014 results. The company is coming off a Q2 […]

Montreal’s CGI Group wins U.S. Department of Homeland Security work

CGI says this new contract might provide an opportunity to expand its footprint within the Department of Homeland Security, particularly in mission-critical IT services such as cyber security and big data solutions.

It seems all the noise about CGI Group’s (TSX:GIB.A) participation in the Obamacare fiasco is not hindering the Montreal-based company’s ability to secure U.S. government work. CGI today announced that the The U.S. Department of Homeland Security has selected its subsidiary, CGI Federal, as a prime technology contractor. Noting that CGI has a history with […]

Q1 Preview: CGI’s “contrarian” acquisition of Logica will pace growth, says Cormark

cgi group

The integration of CGI Group’s (TSX:GIB.A) “contrarian” acquisition of Logica is ahead of schedule and will help pace the company to a higher share price, says Cormark analyst Richard Tse. In a research update to clients this morning, Tse looked ahead to CGI’s Q1 results, which are due before market open on April 30th. The […]

CGI to part ways with Massachusetts. “Not material,” says Cantor

Blue Cross Blue Shield of Massachusetts VP Sarah Iselin says the state will part ways with CGI Group. But Cantor Fitzgerald Canada analyst Justin Kew says he expects contract will run its full term, to September 2014.

More bad press in the U.S. for CGI Group (TSX:GIB.A) is sound and fury, but it signifies nothing, says Cantor Fitzgerald analyst Justin Kew. Yesterday, the Boston Herald ran a salacious headline: “Massachusetts firing Obamacare contractor CGI”. Sarah Iselin, a VP with Blue Cross Blue Shield of Massachusetts, broke the news. “We have made the […]

CGI Group CEO Michael Roach talks to Cantech Letter

Roach on Healthcare.gov "We believe that CGI’s role and the facts surrounding this historical and complex initiative will become clear in the fullness of time."

One of the eternal frustrations with the media business is that a salacious scoop gets page one, and the retraction correcting all the things wrong with it comes a week later, on page 56. Sizzle sells. The facts? Sometimes not so much. Late last year, Montreal’s CGI Group (TSX:GIB.A) became embroiled in the fallout around […]

Cantor’s Kew: Q1 Doesn’t Change my Bullish view of CGI Group

Cantor Fitzgerald analyst Justin Kew says his confidence in CGI Group comes from growing momentum in its pipeline that he believes will translate into expanded revenue and EBIT.

After reporting its Q1, 2014 results shares of CGI Group (TSX:GIB.A) dipped today, but Cantor Fitzgerald analyst Justin Kew says his view on the company’s fundamentals hasn’t changed. CGI reported net earnings of $189.8-million or $0.60 a share on revenue of $2.6-billion. Kew had been expecting EPS of $0.71 on revenue of $2.6-billion. “We delivered […]

Cormark dispels the “lingering and recurring bear thesis” around CGI Group

Cormark analyst Richard Tse says representing CGI's recent decline in cash flow as a normalized run rate is simply not reflective of the the company's outlook going forward post the integration of Logica.

The recent negativity surrounding CGI Group’s (TSX:GIB.A) involvement with Healthcare.gov will ultimately be eclipsed by the continued progress of its contrarian acquisition of Logica, says Cormark analyst Richard Tse. Shares of CGI fell this week after Jim Chanos of Kynikos Associates announced that he had made the stock one of his largest short positions. Chanos […]