1408 ET - CGI's organic growth should benefit from a stronger pipeline. National Bank of Canada's Doug Taylor notes in a report that organic growth improved sequentially, to a contraction of 1.2% from -3.0% in the previous quarter. This should continue to get better, as U.S. Federal contracts returned to growth with a "strong pipeline across Managed services (+20% Y/Y), SI&C (+30%), IP (+30%) and AI (double Y/Y)," which should help drive bookings and organic growth in the quarters to come, Taylor says. "This reacceleration back into positive territory is a key tenet of our positive near-term thesis," he adds.
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