Q: Hi can you please give me your updated views on Kneat and Descartes. Both are out of favor right now but interested if growth rate is still intact?
5i Research Answer:
We have posted comments on KSI this morning. DSG is having a tough year, down 14% YTD, largely on the back of missed expectations and concerns over tariffs and the impact to the logistics sector. DSG has now missed EPS estimates in seven of the past eight quarters. We still like it long term: it has $176M cash, revenue is still growing nicely, and EPS is expected to grow 35%+ over the next two years. But we do need some clarity on the trade war and tariffs to get sentiment to improve. DSG has created a lot of long term value for holders and we would not abandon it here.