Designate Target etc.

The effect of Designate Target is rather vaguely described in-game as being a 25% negative damage deduction. And my first question is quite simply if I'm right in concluding that this damage deduction refers to shield mitigation? My second question is pertains to whether or not any of the TEC cruiser abilities stack? The few tests I've done so far seems to indicate that they, in fact, doesn't.
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No, it's not affecting shield mitigation, rather it gives a direct 25% more damage taken effect which doesn't stack ;)