1448 ET - Software firm CGI's stock has outrun its fundamentals just as industry headwinds deepen. TD Cowen's David Kwan says CGI now trades at a 15%-20% premium to Accenture, despite historically trading at a 25% discount, calling it "a high bar" heading into 3Q results. Accenture, a peer of CGI, and recent data from across the sector show weaker discretionary budgets, longer sales cycles and geopolitical reduced visibility tied to the Iran conflict. Kwan also says the sector continues to face AI-related "pricing and competitive headwinds." Cowen trims forecasts and doesn't expect a return to positive organic growth until fiscal 2027, downgrading the stock rating to hold from buy and lowers its price target to C$99. Shares are down 3.2% to C$89.44, and are down 29% year-to-date.(adriano.marchese@wsj.com)

(END) Dow Jones Newswires

July 23, 2026 14:48 ET (18:48 GMT)

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