CIBC lowered the firm’s price target on Descartes Systems (DSGX) to $126 from $127 and keeps an Outperformer rating on the shares. The firm notes that software stocks under coverage were down an average of 8% in Q3, significantly underperforming the TSX amid concerns over AI disruptions and company-specific factors. Estimate revisions continued post Q2, with the Street lowering 2025 EBITDA estimates for the companies in our coverage by an average of 7%. CIBC expects another volatile earnings season with Q3 results and expects that earnings misses will see outsized market reactions.
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