CGI Group falls on heels of HealthCare.gov snafu

|About: CGI Group Inc. (GIB)|By:, SA News Editor

Shares of CGI Group (GIB -2.9%) fall after a report by Millard Brown Digital states that fewer than 1% of those trying to register on HealthCare.gov under the Affordable Care Act succeeded in doing so during the site's first week of operation. CGI Federal is the IT contractor responsible for the website's development.

Separately, Jefferies initiated CGI at Hold with a PT of $37, observing, ironically, that CGI has a "strong track record of operational execution and above average profitability." However, organic revenue opportunities are "underwhelming" and the "underlying quality of the Logica asset remains to be seen. Valuation (13.7x C14 P/E) looks fair."