UPDATE: Jefferies Initiates Coverage on CGI Group on Fair Valuation

In a report published Thursday, Jefferies analyst Jason Kupferberg initiated coverage on

with a Hold rating and $37.00 price target. In the report, Jefferies noted, “We initiate coverage of GIB with a Hold rating and $37 PT (C$38). In our opinion, GIB is a formidable competitor in the IT services market, with a strong track record of operational execution and above average profitability. That said, organic revs growth is underwhelming, and the underlying quality of the Logica asset remains to be seen. Valuation (13.7x C14 P/E) looks fair.” CGI Group closed on Wednesday at $37.16.