Descartes Systems Group

DSGX · TORONTO

$90.23+$3.57 (+4.12%)TodayMarket closed · Oct 20, 7:55 PM ET

Prev close $86.66

DSGX analyst rating

BuyConsensus of 8 analysts over the last 12 months. 88% rate it a buy.

Strong buy0
Buy7
Hold1
Underperform0
Sell0

12-month price target · 4 analysts

Average $67.89 (−24.8% downside)

Low: $64.43
Now: $90.23
High: $72.80

Upgrades and downgrades

The latest rating actions, newest first

DSGX analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
BMO Capital	Oct 13, 2026	Maintains	Market Perform	$82.00 → $90.00	67%
Loop Capital	Oct 8, 2026	Maintains	Buy	$96.00	56%
Scotiabank	Sep 11, 2026	Maintains	Sector Outperform	$95.00 → $98.00	41%
Loop Capital	Jun 4, 2026	Maintains	Buy	$96.00	56%
Rothschild & Co	Apr 16, 2026	Upgrade	Neutral → Buy	$100.00 → $90.00	55%
Morgan Stanley	Mar 12, 2026	Maintains	Overweight	$115.00 → $100.00	33%
BMO Capital	Mar 12, 2026	Maintains	Market Perform	$95.00 → $82.00	67%
Barclays	Mar 12, 2026	Maintains	Overweight	$90.00 → $89.00	56%
Scotiabank	Feb 4, 2026	Maintains	Sector Outperform	$115.00 → $95.00	41%
Barclays	Jan 12, 2026	Upgrade	Equal-Weight → Overweight	$106.00 → $105.00	56%

The case for and against

Updated Oct 18, 2026

Bull case

Descartes Systems Group is supported by a durable, transaction-driven GLN model that benefits from long multiyear customer contracts, recurring minimums, and meaningful cross-sell potential across a broad logistics software suite. Its F1Q27 results showed services revenue up 9% organically, total revenue of $193.6M, Adjusted EBITDA of $89.8M, and 46.1% margins, while $75M in operating cash flow and 84% cash conversion reinforced strong profitability and discipline. The positive outlook is further backed by sustained demand in tariffs, customs, ecommerce filings, fleet routing, and visibility tools, plus an active M&A strategy that added Tai and Extensiv and should expand both scale and AI-enabled upsell opportunities.

Bear case

Descartes Systems Group is challenged by a transaction-driven core business that still derives roughly 30% of total revenues from the Global Logistics Network, where shipping volumes are under pressure and trucking volumes are down 4% year over year. Although April quarter services revenue grew 9% year over year and Adjusted EBITDA margins reached 46%, the business faces persistent demand headwinds from tariff uncertainty, the Iran conflict, freight broker liabilities, and new regulatory developments in China. The outlook is further weakened by heavy exposure to foreign exchange, intense competition, macro shocks, cyber risk, and the execution risk tied to an aggressive acquisition strategy and a rapidly expanding product line.

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