03:37 PM EDT, 05/24/2024 (MT Newswires) -- Descartes Systems Group ( DSGX ) is expected to report "solid" fiscal Q1 results and realize "strong cost synergies" on the acquisitions of OCR Services and Aerospace Software Developments, RBC Capital Markets said Friday in a report.

Q1 revenue may increase 13% to $154 million from a year earlier, topping the consensus at $151 million, and earnings per share might be $0.42, exceeding the $0.39 consensus, RBC said.

Descartes is scheduled to report results Wednesday.

The company's organic growth is likely to improve sequentially "due to the continued recovery in freight markets."

"We believe Descartes' valuation may continue to re-rate higher as organic growth is sustained above historical averages," RBC said.

RBC raised its price target on Descartes stock to $115 from $110 and reiterated an outperform rating.

Shares of the company rose 0.8% in recent Friday trading.

Price: 99.80, Change: +0.79, Percent Change: +0.80