RBC Capital Markets lowered its price target on CGI Inc. (GIB-A.TO, GIB) to $165 from $175.

Analyst Paul Treiber maintained an Outperform rating on shares of the Canadian multinational information technology consulting and software development company following its fiscal Q4 results.

The stock rose 5% to $126.28 on the Toronto Stock Exchange Wednesday.

"Amidst a challenging market environment, CGI delivered a $0.03 adj. EPS beat," Treiber said in a note to clients.

"Bookings were solid, but new managed services bookings will take time to ramp, so organic growth is likely to remain soft in the near term," the analyst said.

"M&A is a potential catalyst for the stock, as the environment is 'fantastic.'"

"We maintain our Outperform rating and adjust our price target from $175 to $165, given the compression of valuation multiples across IT services peers."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)