One company that doesn't seem bothered by the recession is CGI Group Inc. (NYSE:GIB), who Wednesday landed their third big contract in just two weeks.
Following on the heels of two contracts in the government and healthcare sectors worth approximately $310-million over five years, the information technology company announced Wednesday that it has been awarded a two-year contract worth between $75-million to $100-million with an undisclosed investment bank.
Desjardins Securities analyst Eric Bernofsky said:
While many IT budgets have come under attack it is clear from these contract signings that IT services continue to play a crucial role in helping both government and commercial sector clients achieve operational efficiencies, and that commitments are still being made regardless of the state of the economy.
He reiterated his "top pick" buy rating on CGI and left his C$13 price target unchanged, noting investor confidence is bound to increase given the company's ability to win contracts in tough times.
Indeed, investors have already rewarded the information technology company's pavement pounding, driving CGI shares up more than 8.5% since the stock fell to C$8.85 on Mar. 9, or C$.55 from its 52-week low established in October.