Three Canadian tech stocks analysts love in this market

The markets are choppy, reactive and a little bit squeamish, owing no small part to the prospect of tariffs and geopolitical unrest.

So what does an investor do in times like these? Stick with trusty dividend stocks? They’re not doing so well. Large cap American tech? Even worse.

Analysts at Canadian investment banks have one answer for you. In recent days, several has issued reports highlighting what they feel are undervalued plays in the Canadian tech space. You remember Canadian tech right? Famous for hits like Shopify, Constellation Software and Descartes Systems? Well it seems there are some notables in the space that are currently bubbling under.

Sabio Holdings (TSXV:SBIO)

Following the release of preliminary financials, Beacon Securities analyst Gabriel Leung remains bullish on Sabio Holdings (Sabio Holdings Stock Quote, Chart, News, Analysts, Financials TSXV:SBIO).

“Overall, we view the preliminary Q4 results as a continuation of the strong performance we saw with Sabio’s Q3 results,” he wrote. “We continue to believe that Sabio is back on the right track of growth leveraging its new products (such as Sabio Performance, Sabio Programmatic, and Creator TV) and new sales resources in international markets (notably Europe). We are maintaining our estimates pending the release of the full Q4 results (expected mid-to-late April). We maintain our Buy rating and C$1.50 target price, which is based on 10x CY26e EV/EBITDA.”

WonderFi Technologies (TSX:WNDR)

Following a corporate update, Haywood analyst Gianluca Tucci thinks there is still money to be made on WonderFi Technologies (WonderFi Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WNDR).

On February 19, WNDR issued an update on its January progress, estimating that revenue and interest income was between $7.75-million and $8.25-million.

In a research update to clients February 19, the analyst maintained his “Buy” rating and price target of $0.65 on WNDR.

Tucci thinks the company will post Adjusted EBITDA of $22.0-million on revenue of $64.0-million in fiscal 2025.

“We believe WNDR’s first/early mover advantage in the Canadian crypto market is a significant one as it expands its market leading position in the country with international optionality, the analyst wrote.

Sylogist (TSX:SYZ)

With a key competitor performing below expectations, Ventum Capital Markets analyst Amr Ezzat says the door may be opening for Sylogist (Sylogist Stock Quote, Chart, News, Analysts, Financials TSX:SYZ).

In a research update to clients February 18, the analyst summarized the development.

“Blackbaud reported Q4/24 results this morning, reinforcing our ongoing thesis on the company’s deteriorating positioning,” he wrote. “Since 2023, Blackbaud has aggressively pushed double-digit price increases and three-year contract lock-ins, a strategy we believed would accelerate customer dissatisfaction and churn. This morning’s results confirm that this thesis continues to play out as expected. This matters because Sylogist and Blackbaud directly compete in key software markets serving nonprofits, public sector organizations, and education providers. While Blackbaud dominates the space, its increasingly aggressive pricing strategy is creating a window for SYZ to capitalize on customer attrition.”

In the report, Ezzat maintained his “Buy” rating and price target of $13.50 on SYZ, implying a return of 43% at the time of publication.

Disclosre: Sabio is an annual sponsor of Cantech Letter.