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  5. GIB.A: Regarding Tom's question on Feb 21, regarding rating companies for tariff risk high to low, you rated GIB. [CGI Inc. Class A Subordinate Voting Shares]
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Q: Regarding Tom's question on Feb 21, regarding rating companies for tariff risk high to low, you rated GIB.A as the second highest risk of Tom's list of companies. As this company is near the top of my watch list to buy, would you expand on this company's risk exposure to tariffs.
Asked by Brendon on February 24, 2025
5i Research Answer:

Keep in mind the tariff issue is a very fluid situation. Any rankings are also highly subjective and not more than a guess. Few companies have quantified their impact. GIB.A in its press releases and conference calls has not specifically mentioned tariffs since 2016. While it may not be directly impacted with cross-border shipments of products, we do believe the 'buy American' theme could hurt its ability to win contracts in the US for a period of time. It has some exposure to US government work ($2.6B last year, but this does include some commercial work) and this portion in particular might be more vulnerable, depending on how ugly the trade war gets. Now, with its giant backlog there is some offset to this concern, and valuation is already fairly low. So it is not something we would panic about, but something just to be noted and watched.