Analysts at TD Securities and CIBC Capital Markets raised their price targets on The Descartes Systems Group Inc. (DSG.TO, DSGX) to US$135 from US$115, and US$128 from US$116, respectively.
TD analyst Daniel Chan maintained a Buy rating on shares of the Canadian technology company specializing in logistics and supply chain management software following its Q3 results.
"As expected, another consistent quarter," Chan said in a note to clients. "Strong one-time License revenue drove a slight top line beat."
"We remain favourable on the name given what we believe could be a positive setup for accelerating Services organic growth from recent hardware upgrades, global trade uncertainty, and cross-selling," the analyst said. "Combined with a favourable M&A environment, we believe Descartes' momentum can continue."
CIBC analyst Stephanie Price maintained an Outperformer rating on DSG.
"We see Descartes global trade intelligence division as poised to benefit from increased trade uncertainty, especially around tariffs and sanctioned party screening," Price said in a note to clients.
"In the near term, Descartes may see further transaction growth from advanced shipments ahead of potential tariffs," the analyst said. "With US$181 Million in net cash, we also expect Descartes to continue to execute on accretive M&A."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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