DSG:CC - Descartes Systems stock falls after CIBC downgrades to neutral cuts PT to $71

The Descartes Systems Group (NASDAQ:DSGX) stock fell as much as 6.4% to $61.48 in Monday trading, after CIBC research downgraded the logistics software company to a neutral rating from outperform, citing risks from slowing transportation volumes. CIBC analysts Stephanie Price, Scott Fletcher, Natalie Zhang and Javeria Gaya slashed their price target on DSGX stock to $71 from $89, representing a 8.1% upside to DSGX's last closing price. "We see risks to organic growth from slowing transportation volumes given that ~40% of Descartes' revenue is derived from transaction revenue," the analysts said. DSGX in early June reported Q1 fiscal 2023 earnings that beat on both top and bottom line. However, the CIBC analysts expect that in a weakening macroeconomic environment, organic growth will continue to normalize from the highs during the pandemic. The analysts said they expect that Descartes will look to offset slower organic growth with M&A. Earlier this month, DSGX acquired Utah-based XPS Technologies

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Descartes Systems stock falls after CIBC downgrades to neutral, cuts PT to $71