The Descartes Systems Group Inc. (DSG.TO, DSGX) was upgraded to Outperform from Market Perform at Raymond James on Thursday.

Analyst Steven Li maintained a price target of US$118 on shares of the Canadian software company following its quarterly results.

"Small upside in 3Q, but with Services organic growth rebounding to ~7% at cc (overall organic still anemic at ~2% on difficult hardware and PS compares)," Li said in a note to clients. "This is despite transactional revenues still struggling (tied to economic activity)."

"We think this bodes well for when and as freight markets recover (e.g. Black Friday Cyber Monday had good numbers)," the analyst said.

"In the meantime, A-EBITDA margins reached new highs ~46% with ~86% CFO conversion and DSGX shares are trading close to the bottom of their 10-year EBITDA multiple range."

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