Is Coveo Solutions a buy? (November, 2024)

Following the company’s second quarter results, Eight Capital analyst Adhir Kadve has maintained his “Buy” rating on Coveo (Coveo Stock Quote, Chart, News, Analysts, Financials TSX:CVO).

On November 4, CVO reported its Q2, 2025 results. The company posted Adjusted EBITDA of $1.5-million on revenue of $32.7-million, a topline that was up 5%, year-over-year.

“After a period of thorough evaluation and education, we continue to witness a shift among enterprises towards the adoption of AI solutions that deliver proven results and strong ROI,” CEO Louis Têtu said. “Our second quarter further validated this trend, with robust demand from new and existing customers. We are building momentum as enterprises increasingly choose Coveo for personalized and efficient experiences that generate real business value. We are confident in our ability to sustain positive results and drive continued growth.”

Kadve broke down the quarter, noting that with the stock in an extended slide, he sees opportunity for investors.

“Last night, Coveo reported a modest top line beat with EBITDA stronger,” he wrote. “The company continues to see momentum in its key growth initiatives, namely its CRGA offering and the SAP pipeline. To that end, Coveo saw the best new logo quarter in two years and a 50% sequential increase in CRGA customers. Furthermore, with bookings momentum continuing and expected to accelerate into H2, we see a strong setup for Coveo to reaccelerate growth in FY26, which we believe is a major catalyst for shares. With shares trading at multi-year lows at roughly 2.0x EV/CY25 Sales, we see a strong risk/reward for investors.”

In a research update to clients November 5, Kadve maintained his “Buy” rating and price target of $13.50 on CVO.

The analyst thinks Coveo will post Adjusted EBITDA of $1.8-million on revenue of $134.1-million in fiscal 2025. He expects those numbers will improve to Adjusted EBITDA of $8.2-million on a topline of $151.9-million in fiscal 2026.