Tuesday, January 25, 2011

CGI Group's (NYSE:GIB) Upside Already Priced into Share Price

CGI Group (NYSE:GIB) is expected to have a good quarter, but Canaccord noted much of the upside is already priced into the shares.

Canaccord says, "We are maintaining our recommendation in anticipation of CGI’s Q1/F11 results. Overall, we are expecting results to be positive and are above the Street on our estimates. However, we are of the view that much of the upside is already built into the share price.

"We are looking for Q1/F11 revenue of C$1.2 billion (up 14.4% from the previous quarter and 26.2% from the same quarter last year), slightly above the Street consensus of C$1.1 billion. Our adjusted EPS estimate is C$0.33, largely in line with the Street’s C$0.34."

Canaccord Genuity reiterates a "Hold" rating on CGI Group, which closed Monday at $18.74, up $0.32, or 1.74 percent. Canaccord has a price target of C$18.50 on CGI.

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