Company News

BUZZ-Descartes Systems down on Raymond James downgrade, earnings miss

** Descartes Systems Group fell as much as 9.5 pct before paring losses early Thurs as Raymond James downgraded stock to “market perform” from “outperform” following Canada-based logistics software co’s earnings miss

** Broker has PT of $31

** Lead analyst Steven Li cites valuation and need for more sustained organic growth as downgrade rationale

** Meanwhile, multiple brokers raise PTs; Canaccord (to $34), Morgan Stanley (to $33), CIBC (to $32.50), TD Securities (to $35) and BMO (to $31)

** After the bell Weds, Descartes reported adj EPS of 8 cents vs. 10 cents/share analysts expected (TR I/B/E/S)

** Of 14 analysts covering co, 9 rate “buy” or stronger and remaining 5 have “hold”; median PT $32.65

** Thomson Reuters StarMine awards Li 4 of 5 stars for past Descartes analysis

** Despite today’s dip, DSGX shares have gained 31 pct YTD, slightly besting the 27 pct advance of the Nasdaq Composite (Stephen Culp)