04:44 PM EDT, 05/22/2025 (MT Newswires) -- National Bank on Thursday kept its Outperform rating, but cut its target to C$10 from $13 on Computer Modelling Group ( CMDXF ) following Q4 results analysis.

Among key takeaways, National Bank noted CMG reported Q4 results below its forecasts due to continued macro headwinds that weighed down renewal activity of its marginal customers.

The bank said: "With the stock pulling back to a recent low and expectations now reset based on a set of clear guidelines, we believe the stock has largely priced in those macro challenges."

"Looking ahead," National Bank added, "the recovery will be driven by a combination of efforts to preserve the core customer base while pursuing M&A for incremental growth. On the latter point, we now believe CMG is at a comfortable spot to deploy more capital as the company expanded its scope to include more targets across the oil and gas value chain.

"While we've reduced our target based on our estimate revisions that capture the near-term challenges, we reiterate our Outperform rating as we believe M&A as a growth driver remains intact and will accelerate in the coming year."