CA - CGI Looks Fully Valued Here But M&A Opportunities May Be Attractive
2024-04-23 13:38:22 ET
Summary
- CGI Inc. provides consulting and outsourcing services globally, but slower client spending may continue to affect the company.
- The global market for digital transformation consulting is expected to reach $235 billion by 2031, driving growth for CGI.
- A larger portion of CGI's revenue is generated from outsourcing services, which have proven to be more stable than its consulting segment.
- Until clients increase their discretionary spending, I'm on Hold for CGI Inc., although management may see greater M&A opportunities in the near term.
Investment Outlook
CGI Inc. ( GIB ) provides a range of consulting and outsourcing services to organizations worldwide.
I previously wrote about CGI in June 2023 with a Hold outlook on slower client spending....
CGI Looks Fully Valued Here, But M&A Opportunities May Be Attractive