01:27 PM EST, 01/27/2025 (MT Newswires) -- With fourth-quarter earnings kicking off this week for the tech sector, National Bank is expecting in-line results across its coverage group with some potential exceptions.

While 2024 was a year of headwinds in enterprise, the early setup for 2025 suggests an improving enterprise spending environment through the year which should bode well for names like CGI, Coveo, Descartes, Docebo, Kinaxis ( KXSCF ), and OpenText, analysts Richard Tse and John Shao write.

As for valuations, they don't appear extended based on the 10-year average. National Bank also believes performance will be underscored by the continuation of (an active) M&A market.

National's top picks at the time of writing are: Descartes, D2L, Kinaxis ( KXSCF ), and Shopify ( SHOP ).

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