Stifel Nicolaus Maintains Buy on Descartes Systems Group

Stifel Nicolaus is out with its report today on Descartes Systems Group DSGX, maintaining Buy. In its report, Stifel Nicolaus writes, "Descartes is trading at 12.1x FY12 EPS (10.1x ex-cash). Given the stability of Descartes' business model, its healthy balance sheet and expanding product offering, we believe that a 15x-18x P/E multiple is appropriate. Our valuation uses a combination of three methodologies including DCF, P/E and EV/sales and equates to 16.4x our FY12/FY13 adjusted EPS estimate. We maintain our Buy rating with a price target of $9.00 heading into Q2 results." Shares of DSGX closed Monday at $6.19.