National Bank starts ‘premium consolidator’ Descartes Systems at Outperform

As previously reported, National Bank analyst John Shao initiated coverage of Descartes Systems with an Outperform rating and $125 price target. The company hosts a suite of software and services solutions to power the logistics industry so transportation companies can route, track and quote shipments while communicating with related parties and solving complex tariff and compliance matters, the analyst tells investors in a research note. National Bank adds that unlike the supply chain names in its coverage that primarily focus on organic growth, the firm views Descartes as one of the premium consolidators in Canada, offering a proven ability to consistently acquire and integrate businesses to generate strong growth in revenue, profitability and free cash flow.