Analysts adjusted their price targets on CGI Inc. (GIB-A.TO, GIB) after the Canadian business and technology consulting firm reported quarterly results on Wednesday.

TD Securities analyst David Kwan raised his target on the stock to $153 from $145, and maintained a Buy rating.

"We think CGI is poised to deliver steady growth and margin improvement in the coming quarters," Kwan said in a note to clients.

"Given the share price weakness/underperformance resulting in an attractive valuation (discount to peers; bottom end of its historical range) and FCF yield (~8.5%-9%), we continue to like the stock, which also has M&A upside," the analyst said. "However, we note potential near-term weakness if there is another US government shutdown."

CIBC Capital Markets analyst Stephanie Price lowered her price target to $132 from $139, and maintained a Neutral rating.

"CGI posted in-line FQ1 results despite the impact of the US federal shutdown during the quarter," Price said in a note to clients.

"The tone on the conference call was positive, with CGI noting a strong pipeline in both managed services and consulting," the analyst said.

"We calculate a 4.5% organic decline in FQ1 and expect this to be close to trough, although we expect the timeline to organic growth to be measured," Price said.

:With a solid management team, strong fundamentals and a long operating history, we view CGI as well positioned to navigate the AI environment. That said, we expect the near term to remain volatile and we retain our Neutral rating."

(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)