CGI Wins Public Sector Tender Worth C$576M In Finland
CGI (GIB) has won a public sector tender to provide data center and hybrid IT services in Finland. The eight-year framework agreement will turn the independent IT and business consulting service firm into the largest IT operating service provider in the country.
Valued at about C$576 million, winning the public tender will give the company the responsibility to provide data center and IT services to various ministries, government agencies, and cities. CGI will provide the bulk of the data center and IT services to Valtori, the company responsible for handling Finland’s government information and communication technology services.
CGI engaged in a competitive bidding process to win the contract, which also covers 20 other public administration organizations. The company has vast experience in delivering services to the public sector securely and efficiently. (See CGI stock analysis on TipRanks).
Leena-Mari Lähteenmaa, CGI Finland’s President, stated, “This new agreement is a strong expression of confidence in our expertise, and expands our footprint in the public sector. We look forward to applying our know-how to create a positive experience for both civil servants and residents in Finland.”
Societe Generale analyst Derric Marcon has reiterated a Hold rating on the stock. He has increased his price target to C$109 from C$108, implying 1.41% downside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 9 Buy and 2 Hold ratings. The average analyst price target of $96.84 implies 6.36% upside potential to current levels.
GIB scores a 7 out of 10 on TipRanks’ Smart Score rating system, implying its performance is likely to align with market averages.
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