Descartes Systems initiated with a Buy at Loop Capital

Loop Capital analyst Mark Schappel initiated coverage of Descartes Systems (DSGX) with a Buy rating and $140 price target The recommendation is a play on the tariff theme that is a core tenet of a Trump Presidency, where the new administration is set on restructuring trade agreements and leveraging tariffs as a protectionist measure to boost U.S. manufacturing, the analyst tells investors in a research note. Trade-related regulatory changes and increasing trade friction add complexity to transporting goods across international borders, which historically have been a boon to global trade automation vendors like Descartes that help logistic-intensive businesses streamline common tasks related to import/export processes, such as generating trade documentation, screening restricted party lists, customs filings, and calculating duty and tariffs, the firm adds.