CGI Signs Full Managed Services Contract With Nexelis

CGI Group (GIB.A), one of the world’s largest IT and business consulting firms, has entered into a full managed IT services contract with Nexelis, an international firm specializing in life sciences. Under the contract, Nexelis will leverage CGI’s global reach, best practices in IT modernization, and approach to accelerate business transformation.

Following the launch of a managed security services platform, CGI developed a three-year IT strategy to support Nexelis’ rapid growth. This IT transformation roadmap includes the deployment of full services for the organization’s infrastructure and portfolio of business applications.

Guy Vigeant, President of CGI’s operations in Canada, said, “As Nexelis’ trusted advisor and partner of choice, CGI brings years of in-the-field experience in managing both security and core business processes in life sciences and other sectors. We look forward to helping Nexelis build a more secure IT infrastructure as well as a solid portfolio of enterprise applications to drive its business agility, performance and growth.”

Nexelis’ transformation priorities are the update and international deployment of Infrastructure Managed Services (IMS) and a Laboratory Information Management System (LIMS). (See CGI Group stock charts on TipRanks)

Last week, TD Securities analyst Daniel Chan reiterated a Buy rating on the stock with a C$130.00 price target. This implies 13.74% upside potential.

Overall, consensus on the Street is that GIB.A is a Strong Buy based on 7 Buys and 2 Holds. The average CGI price target of C$117.67 implies upside potential of about 3% to current levels.

TipRanks’ Smart Score

GIB.A scores a 5 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.

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