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

The Descartes Systems Group (NASDAQ:DSGX) (TSE:DSG) had its price target upped by Scotia from $95.00 to $98.00 in a report published on Friday,BayStreet reports. The firm currently has a sector outperform rating on the technology company’s stock.

Other equities analysts have also issued research reports about the company. Raymond James Financial lowered their price target on The Descartes Systems Group from $118.00 to $108.00 and set an “outperform” rating for the company in a research report on Thursday, June 4th. Scotiabank raised their price objective on shares of The Descartes Systems Group from $95.00 to $98.00 and gave the company a “sector outperform” rating in a research note on Friday. Weiss Ratings raised shares of The Descartes Systems Group from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, July 21st. Royal Bank Of Canada set a $125.00 target price on shares of The Descartes Systems Group and gave the stock an “outperform” rating in a research note on Friday, September 4th. Finally, Loop Capital reiterated a “buy” rating and set a $96.00 price target on shares of The Descartes Systems Group in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, The Descartes Systems Group presently has an average rating of “Moderate Buy” and an average price target of $102.36.

The Descartes Systems Group Stock Performance

Shares of NASDAQ:DSGX opened at $76.04 on Friday. The stock has a fifty day simple moving average of $75.62 and a two-hundred day simple moving average of $72.62. The stock has a market capitalization of $6.51 billion, a price-to-earnings ratio of 35.53 and a beta of 0.62. The Descartes Systems Group has a 12-month low of $62.56 and a 12-month high of $107.52.

The Descartes Systems Group (NASDAQ:DSGX) (TSE:DSG) last released its earnings results on Thursday, September 10th. The technology company reported $0.57 EPS for the quarter, hitting the consensus estimate of $0.57. The Descartes Systems Group had a return on equity of 11.75% and a net margin of 24.25%.The business had revenue of $198.12 million for the quarter, compared to the consensus estimate of $197.54 million. During the same period in the previous year, the company posted $0.43 earnings per share. The company’s revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, equities research analysts predict that The Descartes Systems Group will post 2.38 EPS for the current year.

Hedge Funds Weigh In On The Descartes Systems Group

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

The Descartes Systems Group News Summary

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.

About The Descartes Systems Group

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.