William Blair analyst Dylan Becker has maintained their bullish stance on DSGX stock, giving a Buy rating on February 28.
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 has demonstrated solid growth with a 15% increase in services revenue and a 14% rise in adjusted EBITDA, showcasing its ability to meet long-term targets even amidst challenges like muted shipping volumes. Descartes’s focus on U.S.-based logistics, multichannel e-commerce, and global trade intelligence solutions positions it well to navigate the complexities of global trade, which are expected to increase over time.
Furthermore, the ongoing geopolitical uncertainties and supply chain complexities are likely to sustain demand for Descartes’s global trade intelligence platform. The company’s strategy of acquiring complementary products enhances its platform, and the limited funding for smaller supply chain technology firms creates a favorable environment for Descartes’s acquisitions. With an expected annual adjusted EBITDA growth of 15% and a stock trading at 27 times the 2026 adjusted EBITDA estimate, Becker believes that Descartes is set to outperform the market, provided it avoids any disruptive acquisitions.
In another report released on February 28, RBC Capital also maintained a Buy rating on the stock with a $133.00 price target.