CGI's valuation premium over Accenture may not last, according to Scotiabank analyst Kevin Krishnaratne, who cut the Canadian IT company's price target to C$95 from C$110 after Accenture's sharp selloff inverted the companies' long-standing valuation gap. CGI now trades at a slight premium to Accenture, a sharp reversal from the past five years when Accenture consistently commanded a multiple several turns higher. Krishnaratne says CGI shouldn't trade at a large premium because "ACN is still delivering better organic growth ex-FX," but also says that the stock doesn't deserve a steep discount given its heavier exposure to "defensive" sectors and lower consulting mix. He maintains a sector perform rating on the stock, citing continuing AI-related disruptions across IT services. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
June 19, 2026 09:43 ET (13:43 GMT)
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