Yesterday, CGI Group announced that beginning October 1, George Schindler will replace Michael Roach as CEO. Schindler is currently the company’s president and chief operating officer. Roach will remain on the company’s board.
“On behalf of the board and CGI members worldwide, I want to congratulate George on becoming the third CEO in CGI’s 40-year history,” said CGI founder and executive chairman Serge Godin. “With 30 years of experience in consulting services, George has successfully managed large operations in information technology and management consulting. George was identified by the board more than five years ago as a strong candidate for the CEO role. Since then, he has progressively assumed more responsibility, from our U.S. business to North American operations, and, for the last year and a half, all global operations have reported to him.”
Garcea thinks the transition will be seamless.
“Mr. Schindler joined CGI with the AMS acquisition in 2004, and has been groomed for the past five years to become CEO,” he notes. “He has progressively taken on more responsibility over the years, from the US Federal business to the North American business, to then overseeing the global business. We are confident in George’s ability to continue the great job Michael Roach has done during his tenure – with Serge Godin continuing to provide his visionary leadership.”
In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target of (C)$71.00/US$59.00, implying a return of 15 per cent at the time of publication.
Garcea thinks CGI will post EBIT of $1.54-billion on revenue of $10.72-billion in fiscal 2016, numbers he expects will climb to EBIT of $1.60-billion on $11.16-billion the following year.