Canaccord Globe says Young bullish on Descartes Systems Group
2020-09-11 07:56 ET - In the News
The Globe and Mail reports in its Friday, Sept. 11, edition that Canaccord Genuity analyst Robert Young says Descartes Systems Group has displayed "steady execution through turbulence" and feels it is in a good spot to "augment organic growth with M&A." The Globe's David Leeder writes in the Eye On Equities column that Mr. Young says in a note: "We believe that Descartes will be active on M&A in the next 12 months as valuations settle through the volatility. We expect historically strong execution on M&A and potential for higher-quality assets to become available in tough times could fill any gaps left in the wake of weaker organic growth. In the near term, valuations have become inflated, particularly in attractive end markets like e-commerce and software. Moreover, the number of companies for sale has increased significantly. Descartes suggested it would continue to evaluate opportunities but would remain disciplined." After raising his financial expectations for both 2021 and 2022, Mr. Young hiked his share target to $65 (U.S.) from $50 (U.S.), while maintaining his "buy" rating. Analysts on average target the shares at $55.38 (U.S.).
© 2020 Canjex Publishing Ltd. All rights reserved.