TD Securities Believes Descartes (NASDAQ: DSGX) Won’t Stop Here

By Austin Angelo

In a report issued on May 29, Daniel Chan from TD Securities reiterated a Buy rating on Descartes (NASDAQ: DSGX). The company’s shares closed yesterday at $24.70, close to its 52-week high of $25.15.

Chan noted:

“We are expecting revenue growth of about 11% y/y, with contribution from acquisitions. Management purchased five businesses in the past year; however, the majority of these acquisitions were smaller tuck-ins which we believe will have a minor impact on the quarter.”

According to TipRanks.com, Chan is a 4-star analyst with an average return of 14.1% and a 81.8% success rate. Chan covers the Technology sector, focusing on stocks such as Sierra Wireless, BlackBerry, and Celestica.

Currently, the analyst consensus on Descartes is Strong Buy and the average price target is $24.90, representing a 0.8% upside.

In a report issued on May 24, Canaccord Genuity also reiterated a Buy rating on the stock with a $26 price target.

Based on Descartes’ latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $52.82 million and quarterly net profit of $6.09 million. In comparison, last year the company earned revenue of $48.91 million and had a net profit of $6.04 million.

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The Descartes Systems Group, Inc. is an information technology company which provides logistics technology solutions. It specializes in cloud-based solutions including modular and software-as-a-service to route, schedule, track, and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access and leverage global trade and restricted party data; file customers and security documents for imports and exports; research and perform trade tariff and duty calculations and to complete numerous other logistics processes. It primarily supports transportation industry, logistics service providers, third-party logistics providers, freight forwarders, and custom brokers. The company was founded on May 22, 1981 and is headquartered in Waterloo, Canada.