TD upgrades CGI to Buy with cautions priced into shares

TD Securities analyst Daniel Chan upgraded CGI Inc. to Buy from Hold with a price target of C$160, down from C$165. Consensus estimates are now likely baking in a more conservative outlook, while the shares have dropped 12% since TD’s downgrade, the analyst tells investors in a research note. The firm cites a more favorable risk/reward, CGI’s lower relative valuation, and potential for acqsuitions for the upgrade. Given the weak IT services market, there is pressure on management to get a deal done to help drive growth. says TD.