Market Overview

Morgan Stanley Initiates Coverage On Descartes Systems Group

Share:

Morgan Stanley initiated coverage on Descartes Systems Group Inc (USA) (NASDAQ: DSGX) Tuesday with an Equal-weight rating and $15.50 price target.

Analysts led by Brian Essex noted that “Descartes is a $1bn global provider of SaaS-based logistics management and transportation solutions and operates one of the world's largest logistics networks. While the company appears well-positioned to grow share, we see the stock fairly valued at current level.”

“Many vendors offer static solutions. However, DSGX offers a network with sophisticated analytics which enables carriers, manufacturers, distributors, and retailers to manage delivery in real-time to minimize delivery times and reduce costs,” according to Essex.

“Our outlook is supported by secular inefficiencies from growing customs and compliance complexity, a need for customers to deliver products to market with real time responsiveness, and a growing need to solve the increasing complexity of global forwarding and broker operations.”

Essex concluded that “Although DSGX has performed well relative to expectations, the company's double digit revenue growth rate has been contingent on M&A to drive performance over what we estimate is a mid-to-high single digit organic growth rate. Greater contribution from higher growth segments, such as routing, telematics and data content solutions, to drive better organic growth or higher margins going forward could enable us to get more constructive on the stock.”

Descartes Systems closed Monday at $15.42, up 2.59 percent.

Latest Ratings for DSGX

DateFirmActionFromTo
Jan 2020TD SecuritiesMaintainsBuy
Jan 2020BarclaysDowngradesOverweightEqual-Weight
Dec 2019BarclaysMaintainsOverweight

View More Analyst Ratings for DSGX
View the Latest Analyst Ratings

 

Related Articles (DSGX)

View Comments and Join the Discussion!

Posted-In: Brian Essex Morgan StanleyAnalyst Color Price Target Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
VIACNeedhamMaintains20.0
TJXWells FargoUpgrades65.0
SAILNeedhamMaintains19.5
VRNSNeedhamMaintains85.0
NKEWells FargoUpgrades99.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com