11:33 AM EDT, 08/16/2024 (MT Newswires) -- Even though Canadian tech has underperformed in 2024 to date (+5% YTD vs. S&P/TSX +9%), RBC believes that the performance of Canadian tech stocks will strengthen toward the end of 2024 as expectations shift to 2025.

Constellation Software ( CNSWF ) (Outperform, $4,700) is one of the most consistent stocks in RBC coverage, as capital deployed on acquisitions continues to scale, says analyst Paul Treiber.

Despite consumer spending uncertainty, Treiber believes Shopify ( SHOP ) (Outperform, US$85) will see continued solid growth as a result of market share gains.

For Kinaxis ( KXSCF ) (Outperform, $200), Treiber believes bookings momentum may improve in the second half of 2024 and through 2025. Improved bookings may a catalyst for Kinaxis' ( KXSCF ) valuation, which is at the low end of its historical range.

Regarding valuations, RBC's coverage universe is trading at a wider than normal discount to peers (30% vs. historical average of 21%).

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