Analyst Thanos Moschopoulos of BMO Capital maintained a Hold rating on The Descartes Systems Group (DSGX – Research Report), with a price target of $113.00.
Thanos Moschopoulos’s rating is based on a combination of factors that reflect both the strengths and challenges facing The Descartes Systems Group. The company’s recent quarterly results showed revenue slightly below expectations, while EBITDA was in line with forecasts. Despite this, Descartes remains on track to achieve its annual EBITDA growth target of 10-15%, although tariff uncertainties could impact shipping volumes and organic growth in the short term, potentially affecting the stock’s valuation.
Additionally, the company’s organic revenue growth has decelerated compared to the previous quarter, and the upcoming quarter’s projections are slightly below consensus estimates. While Descartes continues to perform well in certain areas, such as its global trade intelligence solutions and recent acquisitions, the overall macroeconomic environment poses challenges. As a result, Moschopoulos has adjusted the target price and maintained a Hold rating, reflecting a cautious outlook amid these mixed signals.
In another report released today, Barclays also maintained a Hold rating on the stock with a $118.00 price target.
Based on the recent corporate insider activity of 28 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.