Thu Sep 26 15:01:56 UTC 2024: ## Descartes Systems Group Receives Outperform Rating and $125 Price Target from National Bank Financial
**Toronto, Canada** – National Bank Financial has initiated coverage on Descartes Systems Group (NASDAQ:DSGX), a leading provider of logistics software and services, assigning an Outperform rating with a price target of $125.00. The positive outlook is based on a multi-stage discounted cash flow (DCF) analysis that projects robust growth for the company.
Analysts at National Bank Financial anticipate a 10-15% EBITDA growth for Descartes Systems over the next decade, fueled by both organic expansion and strategic mergers and acquisitions (M&A). The analysis incorporates a 3% terminal growth rate and a 7-8% discount rate.
Descartes Systems differentiates itself from other supply chain companies through its aggressive acquisition strategy. Known as a “premium consolidator” in Canada, the company has a proven track record of successfully acquiring and integrating businesses, leading to significant increases in revenue, profitability, and free cash flow.
Over the past decade, Descartes Systems has achieved remarkable financial milestones, including a tripling of revenue and a fivefold increase in adjusted EBITDA. This strong performance has driven an impressive 800% surge in the company’s stock price, demonstrating the effectiveness of its growth strategy.
The Outperform rating and price target reflect confidence in Descartes Systems’ ability to continue expanding its market presence and delivering strong financial results.
First Piper 