CGI is my best IT stock idea, this analyst says

Count Desjardins Securities analyst Jerome Dubreuil among the fans of CGI Group (CGI Group Stock Quote, Chart, News, Analysts, Financials TSX:GIB.A).

As reported by the Globe and Mail December 9, the analyst named CGI is top IT services stock for 2025, while maintaining his “Buy” rating and price target of $178.00.

“With discretionary spending still under pressure and customer delays still present, we prefer lower-beta stories,” Dubreuil wrote. “We believe CGI’s high-single-digit EPS growth and its significant amount of dry powder for M&A are attractive, even if prospects for the U.S. government vertical are foggier than usual.”

On November 6, CGI reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBIT of $600.2-million on revenue of $3.66-billion, a topline that was up 4.4% year-over-year.

“I am pleased with CGI’s fourth quarter results as our team delivered increasing revenue growth, sustained earnings expansion, and strong cash from operations,” said François Boulanger, President and Chief Executive Officer. “Looking ahead to fiscal year 2025, we continue to see opportunities for CGI to deliver on our full offering value proposition, which enables clients to achieve business outcomes. In addition, our financial strength deepens our position as an active consolidator.”

At press time, shares of CGI Group on the TSX were down 0.07 to $161.30.