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Investing.com -- Sable Offshore Corp. (NYSE:SOC) stock surged 16% after the company announced a $250 million private placement of shares to institutional investors, significantly bolstering its cash position.

The offshore energy company has entered into subscription agreements to issue approximately 45.5 million shares of its common stock at $5.50 per share. The private placement is expected to close on November 12, 2025, subject to customary closing conditions.

According to the company’s announcement, the proceeds will be used for general corporate purposes. The offering comes amid market concerns about Sable’s cash burn rate, and the capital infusion appears to have reassured investors about the company’s financial stability.

The placement is also expected to satisfy the common equity contribution condition of Sable’s Senior Secured Term Loan amendment, which was previously announced on November 3, 2025.

Jefferies and TD Cowen are serving as joint placement agents for the private placement.

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Investing.com -- Jefferies in a note dated Monday has downgraded Canadian IT services provider CGI Group Inc. (OTC:CGIP) to “hold” from “buy,” saying its organic growth “has been lagging peers due to the company’s greater exposure to underperforming regions and verticals.”

The brokerage said nearly half, 49% of CGI’s revenues, come from geographies it described as “challenged,” including France, Germany, U.S. Federal, and Canada, and that these exposures will likely keep organic growth in negative territory through fiscal 2026.

Jefferies analysts led by Surinder Thind said, “Organic growth has been lagging peers due to the company’s greater exposure to underperforming regions and verticals. With industry trends unlikely to improve much next year, we see no relief.” 

The brokerage now expects revenue to fall 2% year over year on an organic, constant-currency basis in 2026, widening from its earlier projection of a 1% decline.

That comes after the company reported a 3% drop in organic revenue in the latest quarter, compared with a 1% decrease in the prior quarter.

By contrast, peers reported positive growth of 2% to 4% in constant currency during the same period.

Jefferies said the weakness was concentrated in the Systems Integration and Consulting (SI&C) segment, which accounts for about 45% of revenues and “declined low double-digits y/y on an organic cc basis as clients continue to push out systems implementation projects.” Managed Services, which makes up the remainder, still showed modest growth of around 2% y/y.

The brokerage warned that the U.S. Federal Government shutdown will further pressure results, estimating a $60-$75 million headwind to fiscal 2026 revenues.

Margins are also expected to stay flat. “Margin challenges [are] not going away,” Jefferies said, noting CGI had just completed a $200 million restructuring program, its second in two years. 

The brokerage projects adjusted EBIT margins of 16.4% in fiscal 2026, unchanged from the prior year, citing continued M&A integration and weak organic momentum. 

Adjusted EPS is forecast to rise 8.6% year over year to C$9.01, driven primarily by acquisitions and share buybacks rather than operational gains.

While the company reported record quarterly bookings of C$4.8 billion, including C$3.2 billion in Managed Services (+27% y/y) and C$1.6 billion in SI&C (+22% y/y), Jefferies noted that “the bookings did include some catch-up from prior quarters” and “ACV growth was closer to flat.” 

The brokerage added that such levels “are not high enough to generate positive growth.”

Jefferies lowered its price target to $81 from $105, implying a 6% downside from CGI’s last close of $86.18. 

The target is based on a 12.5x P/E multiple applied to the brokerage’s calendar 2026 adjusted EPS estimate of C$9.12, using an exchange rate of USD/CAD 1.41. 

CGI’s forward P/E multiple of 13.4x remains above the peer average of 12.5x, suggesting limited room for multiple expansion.

The analysts added, “CGI remains a high-quality business, but we are concerned its stock performance will lag peers in the near-term due to how its financials are trending relative to peers.”