Descartes Systems initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Chris Quintero initiated coverage of Descartes Systems (DSGX) with an Equal Weight rating. Descartes Systems, a leading provider with a proven track record of M&A, is well-positioned to capture market share in the fragmented Logistics total addressable market of $6B, the analyst tells investors in a research note. A recent slowdown in organic growth due to a softer macro likely drives EBITDA to ~11%, the firm says, adding that valuation already reflects durable low-teens EBITDA growth.