Q: Please help me make up my mind on what to do with Descartes, down 40% in one year down 16% YTD. Looks like it and CSU are on a race to the bottom. Your thoughts on DSG would be greatly appreciated.
5i Research Answer:
DSG is getting hit with AI fears, but it is sentiment and not fundamentals that is driving the price action. We posted comments on DSG Jan 19. We would continue with a HOLD rating but admit it is tough in the face of negative momentum. But it is holding excess cash and still expected to show 20% earnings growth in the next year. We need to focus on the fundamentals in the face of fear here.