Descartes Systems Group Keeps Outperform Rating, US$130 Price Target at RBC Capital Markets

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Descartes Systems Group Keeps Outperform Rating, US$130 Price Target at RBC Capital Markets

, MT Newswires - 10:39 AM ET 3/28/2025 default

10:39 AM EDT, 03/28/2025 (MT Newswires) -- The Descartes Systems Group ( DSGX ) has retained its Outperform rating and US$130 price target, RBC Capital Markets said in a Friday note after hosting Descartes' management for several investor meetings in Toronto.

RBC said the price target remains based on 30x CY26e EV/EBITDA.

RBC said it sees Descartes' valuation as attractive, given the likelihood of sustained low double-digit adjusted EBITDA growth.

While tariffs are creating uncertainties for customers, tariffs are also increasing demand for Descartes' Global Trade Intelligence solutions and are a long-term driver of supply chain transformation initiatives, RBC said.

"Descartes is conservatively managed, and we anticipate largely resilient cashflows through this environment, which we expect the company to deploy on increased M&A," RBC said.

Descartes' share price was down 1.4% at last look to $143.51.

Price: 143.56, Change: -1.97, Percent Change: -1.35

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