Stock Track | Descartes Systems Group Soars 5.15% in Pre-Market After Raymond James Upgrade

Stock Track
2025/12/04

Descartes Systems Group (DSGX) saw its stock surge 5.15% in pre-market trading on Thursday following an upgrade by Raymond James. The analyst firm raised its rating on the Canadian software company from Market Perform to Outperform, maintaining a price target of US$118.

Analyst Steven Li noted that Descartes' services organic growth rebounded to ~7% at constant currency, despite challenges in transactional revenues tied to economic activity. Li also highlighted the company's strong A-EBITDA margins of ~46% and its attractive valuation, trading near the bottom of its 10-year EBITDA multiple range.

The upgrade suggests optimism about Descartes' performance as freight markets recover, with positive indicators such as strong Black Friday and Cyber Monday numbers.

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