01:54 PM EST, 11/29/2024 (MT Newswires) -- RBC writes that investor sentiment on Canadian tech stocks appears to be improving, as the average stock in its coverage rallied 4% after calendar third quarter earnings, largely due to disproportionate gains from the stocks that exceeded expectations.

Of the 14 companies in RBC's coverage that reported calendar third quarter results, seven exceeded revenue expectations, while the other half missed. The ones that beat expectations experienced material rallies (up 9% on average), whereas the ones that missed were only down 2% on average after earnings, RBC analyst Paul Treiber noted.

Treiber also believes third quarter earnings have lifted investor visibility on some stocks to improved growth and profitability in 2025. Sentiment on tech stocks may continue to improve through the end of 2024 and into 2025, as visibility to stronger growth and profitability is likely to materialize, in RBC's view.

"As we look to 2025, we think the stocks most attractively positioned in our coverage universe are Constellation, Shopify ( SHOP ), and Kinaxis ( KXSCF )."

Constellation Software ( CNSWF ) is rated Outperform, with a $5,300 target.

Kinaxis ( KXSCF ) is rated Outperform, with a $200 target,

Shopify ( SHOP ) is rated Outperform, with a US$130 target.

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