Descartes (DSGX) PT Lowered at RBC Capital as 'Global Trade Declines in May'

RBC Capital analyst Paul Treiber lowered the price target on Descartes (NASDAQ: DSGX) to $126.00 (from $130.00) while maintaining an Outperform rating.

The analyst commented: "Global trade declines in May; Q1 was mixed, with revenue and organic growth below RBC/ consensus, while adj. EBITDA was in line with consensus. For Q2, Descartes disclosed global trade volumes materially slowed in May. Given the slowdown, Descartes implemented a 7% RIF and provided Q2 baseline below expectations. Maintain Outperform, as Descartes' M&A model is counter-cyclical and capital deployed may increase in this environment. Target moves from $130 to $126."

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