Stifel Nicolaus Reiterates Buy, $9 Target on Descartes Systems

Stifel Nicolaus maintains its Buy rating and $9 target on Descartes Systems Group

on solid margins in 3Q and telematics deal pipeline building. Stifel says, “3Q was another strong quarter for Descartes, with EBITDA slightly above estimates despite FX headwinds (Canadian dollar and the euro) and ~$1mn in lost legacy Porthus revenue. On the call, management again reiterated that customer interest in the new Telargo telematics solution was building a significant backlog. Management noted that US export volumes remained strong and, despite Europe and Asia volumes beginning to slow, customers in those areas are accelerating their demand for Descartes rapid ROI solutions.” DSGX closed at $6.87 on Thursday.