William Blair analyst Dylan Becker has maintained their bullish stance on DSGX stock, giving a Buy rating today.
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Dylan Becker has given his Buy rating due to a combination of factors that highlight The Descartes Systems Group’s strong performance and strategic positioning. The company reported a robust second quarter with a 14% growth in both services revenue and adjusted EBITDA, indicating solid financial health and operational efficiency. Despite a challenging shipping environment, Descartes has shown resilience with sequential improvements in volume during July and August.
Moreover, Descartes’ subscription business is thriving, driven by its Global Trade Intelligence solutions, which include customs and regulatory filings management, enhanced tracking capabilities, and fraud prevention. The company’s MacroPoint solution also adds value by providing increased visibility across the shipment lifecycle, helping customers manage ongoing uncertainties. Becker believes that Descartes is well-positioned to leverage the growing complexity of global trade, maintaining its trajectory towards achieving long-term targets of 10%-15% annualized adjusted EBITDA growth.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $126.00 price target.