The Descartes Systems Group Outperform Rating, US$135 Price Target, Confirmed at National Bank of Canada

03:45 PM EDT, 07/15/2025 (MT Newswires) -- National Bank of Canada on Tuesday maintained its outperform rating and US$135 price target on the shares of The Descartes Systems Group (DSGX) , providing implications of the June Freight Index for the company.

The bank said that Cass Information Systems published its latest Cass Freight Index on Monday, showing that on a year-over-year basis, the second quarter had an average volume decline of 3.3%, a sequential improvement from Q1's 6.3% drop.

National Bank's baseline expectation going into the fiscal second quarter is a stabilized organic growth with sequential improvement.

The bank points to some volatility in the second half of the fiscal year, as U.S. negotiations with major trade partners are still in progress, and thus trade uncertainty has yet to be fully eased.

"However, if stabilization and sequential improvement do occur in the upcoming quarter according to the direction of the freight index, they serve as valuable validation of Descartes' operating leverage and upside potential in a scenario where the trade volume returns," said analyst John Shao. "That view, when combined with the Company's strong balance sheet for acquisitions and the Management's commitment to meet its EBITDA growth target is why we continue to view Descartes as a high-quality compounder in our coverage."

Price: 140.60, Change: +0.07, Percent Change: +0.05

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