The Descartes Systems Group (NASDAQ:DSGX) Price Target Raised to $98.00

by · The Cerbat Gem

The Descartes Systems Group (NASDAQ:DSGX – Free Report) (TSE:DSG) had its target price increased by Scotiabank from $95.00 to $98.00 in a research note issued to investors on Friday morning,Benzinga reports. The brokerage currently has a sector outperform rating on the technology company’s stock.

A number of other equities research analysts have also recently weighed in on the company. Weiss Ratings upgraded The Descartes Systems Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, July 21st. Raymond James Financial reduced their price target on The Descartes Systems Group from $118.00 to $108.00 and set an “outperform” rating on the stock in a research report on Thursday, June 4th. Royal Bank Of Canada set a $125.00 target price on shares of The Descartes Systems Group and gave the company an “outperform” rating in a report on Friday, September 4th. Loop Capital reiterated a “buy” rating and set a $96.00 price objective on shares of The Descartes Systems Group in a research report on Thursday, June 4th. Finally, National Bank Financial set a $95.00 price target on shares of The Descartes Systems Group and gave the stock an “outperform” rating in a report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $102.36.

Read Our Latest Report on DSGX

The Descartes Systems Group Price Performance

Shares of NASDAQ:DSGX opened at $76.04 on Friday. The company’s 50-day moving average price is $75.62 and its two-hundred day moving average price is $72.62. The stock has a market capitalization of $6.51 billion, a PE ratio of 35.53 and a beta of 0.62. The Descartes Systems Group has a one year low of $62.56 and a one year high of $107.52.

The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) (TSE:DSG) last issued its quarterly earnings results on Thursday, September 10th. The technology company reported $0.57 EPS for the quarter, meeting the consensus estimate of $0.57. The firm had revenue of $198.12 million during the quarter, compared to analysts’ expectations of $197.54 million. The Descartes Systems Group had a return on equity of 11.75% and a net margin of 24.25%.The business’s quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.43 earnings per share. On average, analysts anticipate that The Descartes Systems Group will post 2.38 earnings per share for the current fiscal year.

Institutional Investors Weigh In On The Descartes Systems Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Clearbridge Investments LLC lifted its holdings in The Descartes Systems Group by 25.2% during the fourth quarter. Clearbridge Investments LLC now owns 403,854 shares of the technology company’s stock worth $35,402,000 after acquiring an additional 81,354 shares during the period. Norges Bank purchased a new position in shares of The Descartes Systems Group during the 4th quarter valued at $100,405,000. Bank of America Corp DE lifted its position in shares of The Descartes Systems Group by 62.0% during the 1st quarter. Bank of America Corp DE now owns 733,483 shares of the technology company’s stock valued at $52,488,000 after buying an additional 280,713 shares during the last quarter. BNP Paribas Financial Markets grew its stake in shares of The Descartes Systems Group by 809.0% during the 4th quarter. BNP Paribas Financial Markets now owns 236,003 shares of the technology company’s stock worth $20,688,000 after acquiring an additional 210,041 shares during the period. Finally, Peregrine Capital Management LLC purchased a new position in shares of The Descartes Systems Group in the first quarter worth about $8,671,000. Hedge funds and other institutional investors own 77.73% of the company’s stock.

Key Stories Impacting The Descartes Systems Group

Here are the key news stories impacting The Descartes Systems Group this week:

  • Positive Sentiment: Record quarterly performance: Revenue increased 12% year over year to $201.1 million, while operating income rose 36% to $65.5 million and net income climbed 32% to $50.0 million. Diluted EPS increased to $0.57 from $0.43, meeting consensus, and adjusted EBITDA grew 18% to $94.4 million, with the margin expanding to 47%. Descartes fiscal 2027 second-quarter results
  • Positive Sentiment: Strong recurring revenue and cash flow: Services revenue, which represented 94% of total revenue, grew 13%. Operating cash flow rose 28% to $81.3 million, and the company ended July with $401.1 million in cash. These figures support continued investment, acquisitions and share repurchases.
  • Positive Sentiment: Higher analyst target: Scotiabank raised its DSGX price target from $95 to $98 and maintained a “sector outperform” rating, implying roughly 29% potential upside from recently cited levels. Benzinga analyst coverage
  • Positive Sentiment: Acquisition strategy broadens its platform: Recent purchases of Transportation Applied Intelligence Software and Extensiv, totaling approximately $219.2 million, expand Descartes’ transportation-management, warehouse-management and fulfillment capabilities. Its Global Logistics Network also creates customer switching costs that can support retention and pricing power. Descartes outlook and valuation
  • Neutral Sentiment: Key execution risk: Future growth depends partly on successfully integrating acquisitions and finding additional attractive targets. Acquisition-related costs may also recur, making adjusted EBITDA less representative of fully loaded operating expenses.
  • Neutral Sentiment: Short-interest data: Reported short interest was zero, but the accompanying change and days-to-cover figures appear unreliable, limiting their usefulness as a trading signal.

The Descartes Systems Group Company Profile

(Get Free Report)

The Descartes Systems Group Inc is a Canadian technology company that provides cloud-based logistics and supply chain management software. Its platform helps businesses manage the movement of goods, shipments, vehicles and trade-related information across complex supply chains.

The company’s offerings include transportation management, route planning and optimization, shipment tracking, telematics, freight matching, customs and regulatory compliance, logistics messaging, and electronic connectivity among shippers, carriers, brokers, manufacturers and other supply chain participants.

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