CGI initiated with a Neutral at UBS

UBS initiated coverage of CGI with a Neutral rating and $112 price target. The analyst sees long-term opportunity for investors to gain exposure to secular trends including IT modernization, generative artificial intelligence implementation, cybersecurity, and greater IT outsourcing “without risks associated with ongoing volatility in the tech sector end market.” However, the firm is Neutral given a lack of meaningful near-term catalysts coupled with macro uncertainty driving client caution and subdued acquisition activity impacting revenue growth.