CGI's (GIB) organic growth is likely to remain negative in Q1 as the company's job postings fell for the sixth consecutive quarter in Q4, RBC Capital Markets said in a Monday note.
RBC said CGI's job postings declined by 5% quarter on quarter in Q4 to 3,324, compared with a 3% fall in Q3. The company's job postings lagged that of peers in the sector, which appeared to be "stabilizing," the investment firm added.
Even with the projected negative organic growth in Q1, RBC said CGI's acquisitions and share buybacks are expected to drive adjusted earnings per share in the near term. Improvement in macro IT services demand this year could also lift the company's organic growth, RBC noted.
RBC maintained its outperform rating and CA$165 ($120) price target on CGI.
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