The Descartes Systems Group (NASDAQ:DSGX) Raised to Buy at Rothschild & Co Redburn

Key Points

• The Descartes Systems Group was upgraded by Rothschild & Co Redburn from "neutral" to "buy" with a $90 price target, implying roughly a 24% upside from the prior close.
• Analysts are mixed but the consensus is a Moderate Buy with an average price target of $105.45; ratings include 1 Strong Buy, 9 Buy, 2 Hold and 1 Sell.
• Descartes beat the quarter (EPS $0.52 vs. $0.50; revenue $192.37M, +15.1% YoY), yet the stock trades near $72.60 (market cap ~$6.25B) and is heavily institutionally owned (~77.7%).

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG was upgraded by investment analysts at Rothschild & Co Redburn from a "neutral" rating to a "buy" rating in a report issued on Thursday, MarketBeat Ratings reports. The firm currently has a $90.00 price target on the technology company's stock. Rothschild & Co Redburn's target price points to a potential upside of 23.97% from the company's previous close.

Other equities analysts have also issued reports about the company. Barclays dropped their price target on The Descartes Systems Group from $90.00 to $89.00 and set an "overweight" rating for the company in a research note on Thursday, March 12th. BMO Capital Markets reduced their price target on shares of The Descartes Systems Group from $95.00 to $82.00 and set a "market perform" rating on the stock in a research report on Thursday, March 12th. Weiss Ratings downgraded shares of The Descartes Systems Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, April 9th. Zacks Research lowered shares of The Descartes Systems Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Finally, Scotiabank dropped their price objective on shares of The Descartes Systems Group from $115.00 to $95.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, The Descartes Systems Group has an average rating of "Moderate Buy" and a consensus price target of $105.45.

The Descartes Systems Group Price Performance

DSGX opened at $72.60 on Thursday. The company has a 50 day simple moving average of $68.83 and a two-hundred day simple moving average of $80.99. The firm has a market cap of $6.25 billion, a P/E ratio of 39.03 and a beta of 0.71. The Descartes Systems Group has a 1-year low of $62.56 and a 1-year high of $117.35.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last released its earnings results on Wednesday, March 11th. The technology company reported $0.52 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.02. The company had revenue of $192.37 million for the quarter, compared to analysts' expectations of $188.09 million. The Descartes Systems Group had a net margin of 22.47% and a return on equity of 10.70%. The Descartes Systems Group's revenue for the quarter was up 15.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 EPS. Equities analysts anticipate that The Descartes Systems Group will post 1.64 earnings per share for the current year.

Institutional Trading of The Descartes Systems Group

Hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. grew its holdings in The Descartes Systems Group by 35.1% in the first quarter. Goldman Sachs Group Inc. now owns 377,140 shares of the technology company's stock worth $38,027,000 after purchasing an additional 98,054 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in The Descartes Systems Group by 1.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 54,618 shares of the technology company's stock worth $5,507,000 after buying an additional 660 shares during the period. Amundi increased its holdings in The Descartes Systems Group by 74.5% in the 2nd quarter. Amundi now owns 82,319 shares of the technology company's stock worth $8,360,000 after buying an additional 35,132 shares during the period. Federated Hermes Inc. raised its position in The Descartes Systems Group by 25.6% during the 2nd quarter. Federated Hermes Inc. now owns 1,246 shares of the technology company's stock worth $127,000 after buying an additional 254 shares during the last quarter. Finally, AXA S.A. raised its position in The Descartes Systems Group by 2.0% during the 2nd quarter. AXA S.A. now owns 6,702 shares of the technology company's stock worth $681,000 after buying an additional 130 shares during the last quarter. 77.73% of the stock is owned by hedge funds and other institutional investors.

About The Descartes Systems Group

The Descartes Systems Group Inc NASDAQ: DSGX is a global provider of cloud-based logistics and supply chain management solutions. The company's software-as-a-service platform connects and optimizes the flow of goods, information and payments across the global supply chain, helping businesses coordinate transportation, customs clearance, routing, scheduling and fleet management. Descartes' modular applications serve shippers, carriers, third-party logistics providers and regulatory authorities by enabling real-time visibility, compliance and execution across complex trade networks.

Headquartered in Waterloo, Ontario, Descartes was founded in 1981 and has grown through a combination of organic development and strategic acquisitions.

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