William Blair analyst Dylan Becker has maintained their bullish stance on DSGX stock, giving a Buy rating on June 3.
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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 positioning in the market. The company reported a solid quarter with a 14% increase in services revenue and a 12% growth in adjusted EBITDA, indicating its resilience and ability to meet long-term objectives despite challenges in the shipping sector. Descartes’s transportation management suite and global trade intelligence solutions are particularly noteworthy, as they support increased visibility and help customers navigate the complexities of global trade.
Moreover, Descartes’s strategic acquisitions have expanded its platform’s cross-sell potential, further strengthening its market position. The company is well-positioned to benefit from ongoing global trade uncertainties and geopolitical issues, which are likely to sustain demand for its offerings. Additionally, the limited funding environment for smaller supply chain tech firms could enhance Descartes’s acquisition strategy, creating a favorable M&A landscape. Becker believes that with a projected 15% annual growth in adjusted EBITDA and a stable trading multiple, Descartes’s stock is poised to outperform the broader market.
In another report released on June 3, Scotiabank also maintained a Buy rating on the stock with a $127.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DSGX in relation to earlier this year.