$CVO.TO

Coveo Solutions Share Price Target Trimmed to $9.00 at Stifel Canada

Stifel Canada lowered its price target on the shares of Coveo Solutions (CVO.TO) by $2.00 to $9.00 and reiterated its buy rating after the company reported an inline fiscal fourth-quarter and provided a lighter outlook for fiscal 2027.According to analyst Suthan Sukumar, the softer outlook speaks to incremental deal-timing uncertainty given growing traction with larger, multi-use-case enterprise deals.He see conservatism in the F27 guidance, particularly with the arrival of a new sales chief in June and the emerging sovereign AI opportunity (upside to the guide)."We maintain our Buy rating but lower our target to $9/share on lower estimates. At 1x Sales, risk/reward remains attractive, in our view."Price: $4.03, Change: $+0.29, Percent Change: +7.75%

Coveo Reports Wider Q4 Loss, Revenue Miss

Coveo Solutions (CVO.TO) after trade on Wednesday said its fiscal fourth-quarter loss widened while its revenue rose year-over-year but missed analysts' expectations..The artificial-intelligence company said it lost US$2.3 million, or US$0.02 per share,in the quarter ended March 31, compared with a loss of US$6.3 million, or US$0.07 per share, a year ago. FactSet expected earnings of nil per share.Revenue rose 9% year-over-year to US$37.4 million from US$34.4 million in the year-ago quarter. FactSet estimated US$37.5 million."We closed the year with the strongest fourth quarter new business performance in our history, including another landmark enterprise win representing the largest new customer deal in our history for the second consecutive quarter. The momentum we continue to see across our Generative AI and Commerce offerings reinforces the increasingly strategic role our platform plays for large global enterprises," chief executive Laurent Simoneau said.The company said SaaS subscription revenue stood at US$35.9 million, an increase of 10% compared to $32.6 million in the prior period.For the fiscal 2027 first-quarter, SaaS subscription revenue is forecast at US$37.1 million to US$37.6 million, with total revenue of US$38.2 million to US$38.7 million. While for full 2027 financial year, SaaS subscription revenue is forecast at US$154.0 million to US$158.0 million, with total revenue of US$160.0 million to US$164.0 million.The company's shares closed down C$0.20 to C$4.66 on the Toronto Stock Exchange.

Earnings Flash (CVO.TO) Coveo Solutions Reports Q4 Net Loss US$2.3M Compared to $6.3M in the prior period.

GUIDANCE: (CVO.TO) Coveo Solutions Expects Q1 Total Revs In Range US$38.2M to $38.7M; FY Total Revs In Range of $160-$164M

Coveo Solutions Q4 Total Revs US$37.4M

RBC Provides its Canadian Technology Q1/CY26 Preview

RBC Capital Markets provided a first-quarter earnings preview for stocks in its Canadian Technology coverage universe on Friday.The S&P/TSX Info-Tech sub-sector had its "worst start to the year" since 2022, due to the continued downward re-rating of software stocks on concerns regarding AI disruption, noted RBC.While RBC expects Q1 results to be "largely in line" with consensus and believes the "magnitude of the pullback in software valuations is an overreaction," it believes sentiment is unlikely to materially change in the short term.Even though RBC anticipates "slightly improved organic growth" for the average stock in its coverage this quarter, the market appears "risk-averse and may largely ignore positive surprises and disproportionately penalize negative surprises," in light of the market sensitivity regarding AI disruption and uncertainty regarding the macro environment, said RBC.Among its covered stocks, RBC believes the "best-positioned stocks" for calendar Q1 results are Celestica (CLS.TO), Shopify (SHOP.TO), Constellation Software (CSU.TO), and Kinaxis (KXS.TO).RBC believes Celestica will report Q1 earnings above consensus and increase FY26 guidance, given hyperscaler capex continues to increase, along with strong network switch and AI server demand, against Celestica's historically conservative outlook, added RBC."Given the strong 36% YTD rally in Celestica's shares, Q1 results may not be a catalyst for the stock," said RBC. "Even so, we believe Celestica's strong growth momentum, ongoing margin expansion, and mix shift to more structurally attractive segments of the market are likely to help sustain Celestica's valuation to remain above peers and toward the high end of its historical range."For Shopify, RBC expects "solid" Q1 results and Q2 guidance slightly above consensus estimates.U.S. e-commerce spending strengthened through Q1, noted RBC which it believes implies revenue growth accelerates sequentially, with Q1 revenue and adj. EPS likely slightly above consensus."While the valuation of Shopify's shares has re-rated down with the YTD pullback in software stocks, Shopify's fundamentals remain solid, in our view, and we expect strong growth to drive shareholder returns over the long term," said RBC.RBC expects Constellation's shares to modestly rally following Q1 results."With the stock trading near multi-year valuation lows, we see investor sentiment improving, given Q1 slightly ahead of consensus, TTM free cashflow up 25%, and annualized Q1 capital deployed on acquisitions likely tracking to a new record," said RBC. "We see Constellation's valuation as compelling, compared to our forecast for a 17% adj. EBITDA CAGR over the next 3 years."RBC believes Kinaxis's shares may "slightly rally" following Q1 results. It expects Kinaxis to report "solid" Q1 results, slightly above consensus, with continued growth re-acceleration and likely healthy bookings."With Kinaxis seeing reaccelerating growth, but trading at discounted valuation levels, we see compelling risk-reward on the shares," added RBC. "Moreover, ramping share buybacks may provide a floor for the stock."Price: $565.60, Change: $+28.12, Percent Change: +5.23%