COVID-19 can’t diminish its appeal

Article Excerpt

The shares of CGI, Canada’s largest provider of computer outsourcing services, have dropped about 30% in the past month due to the COVID-19 outbreak. That in part reflects the pandemic’s role in limiting visits by the company’s representatives to both existing and prospective clients. However, the company is in a strong position to survive the crisis, and thrive again when the economy rebounds. That’s because the disruption has helped highlight CGI’s key role in helping businesses and government agencies keep operating, particularly as more of their employees work remotely. As well, CGI still aims to double its annual revenue growth in the next five to seven years. Moreover, the impact of the virus will probably make it easier for the company to acquire distressed competitors. CGI INC. $79 is our #1 Aggressive buy for 2020. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.3 million; Market cap: $21.3 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Extra Risk; helps…

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