Q: Strong market today but KXS drops over 3%. It's been a lacklustre performer for some time. How serious a threat is AI? How strong a product do they have? KXS has been identified as a potential good performer in 2026 by some analysts. What is your take on the company? Is it worth keeping?
5i Research Answer:
We don't want to shrug off the threat of AI on software, but we have a hard time seeing how a company utilizes AI in-house to create a competitive supply chain and logistics solution. We think AI is more likely to be something that can be built into current offerings or lead to new offerings for companies like this but it will take time on teh AI side of things. Recent quarters have showed there might be a bit of a turnaround at hand so we think it is worth giving them another quarter here to see if the trend continues.