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Best Canadian Tech Stocks to Buy in March 2024, According to Analysts – TipRanks.com

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Analysts see good growth potential in two Canadian tech stocks: Coveo Solutions (TSE:CVO) and Kinaxis Inc (TSE:KXS), as global macro headwinds are expected to take a back seat. The technology sector was rather dull in 2023 owing to high interest rates and an inflationary environment that hampered growth. In 2024, however, experts are predicting a return to normalization as central banks worldwide are expected to steadily cut down interest rates amid falling inflation.

Keeping this backdrop in mind, it would be profitable to consider investing in tech stocks such as CVO and KXS. Both stocks attract a Strong Buy consensus rating on TipRanks and are expected to generate more than 30% upside potential in the next twelve months.

Coveo Solutions (TSE:CVO)

Coveo Solutions is a Software-as-a-Service company that operates an artificial intelligence (AI)-powered platform designed for business needs. Coveo’s platform enables a trusted and wholesome experience for customers and employees through AI recommendations, Semantic Search, Unified Personalization, and GenAI (generative AI) Answering.

In its Q3 FY24 results, Coveo’s SaaS subscription revenues jumped 13% year-over-year while operating loss reduced by 40%. Based on the continued demand momentum, Coveo raised its guidance for the full-year Fiscal 2024.

SaaS subscription revenue is now forecasted in the range of C$118 to C$118.5 million in FY24, while adjusted operating loss is projected between C$7.5 and C$8.5 million.

Is Coveo a Good Stock to Buy?

With seven unanimous Buys, CVO stock has a Strong Buy consensus rating on TipRanks. The average Coveo Solutions share price forecast of C$14.50 implies 37.3% upside potential from current levels. In the past year, CVO shares have gained 36.3%.

Kinaxis is also a SaaS company offering supply chain management and sales and operation planning services. Kinaxis’ cloud-based RapidResponse platform combines human intelligence with AI to enable professionals and businesses to manage their supply chains efficiently while proactively monitoring risks, responding speedily, and reducing waste.

In its Q4 FY23 results, the company’s SaaS revenues jumped 19% and Professional services revenues leaped 31% year-over-year. Meanwhile, Kinaxis’ net profit fell 53% as the company continues to spend on marketing and research and development costs. For Fiscal 2024, Kinaxis forecasts SaaS revenues to grow between 17% and 19% over FY23.

Is Kinaxis a Good Stock to Buy?

With nine unanimous Buy ratings, KXS stock commands a Strong Buy consensus rating on TipRanks. The average Kinaxis share price forecast of C$199.44 implies 32.5% upside potential from current levels. In the past year, KXS stock has lost 12.2%.

Ending Thoughts

The above two technology stocks have more than 30% upside potential over the next twelve months, as per analysts. Investors can consider investing in them after thorough research.

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