Following the release of Distribution Solutions' (DSGR, Financial) first-quarter report, Barrington analyst Kevin Steinke has adjusted the company's price target, bringing it down to $39 from a previous $44. Despite this revision, Steinke maintains an Outperform rating on the stock. The decision comes as some sectors have shown vulnerability amid broader economic uncertainties, as noted in his research note to investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Distribution Solutions Group Inc (DSGR, Financial) is $40.00 with a high estimate of $44.00 and a low estimate of $36.00. The average target implies an upside of 65.91% from the current price of $24.11. More detailed estimate data can be found on the Distribution Solutions Group Inc (DSGR) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Distribution Solutions Group Inc's (DSGR, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Distribution Solutions Group Inc (DSGR, Financial) in one year is $34.58, suggesting a upside of 43.43% from the current price of $24.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Distribution Solutions Group Inc (DSGR) Summary page.
DSGR Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Distribution Solutions Group Inc (DSGR, Financial) reported a 14.9% increase in revenue for Q1 2025, driven by acquisitions and organic growth.
- Adjusted EBITDA grew by 18.6% year-over-year, indicating improved profitability.
- The company successfully integrated five acquisitions from 2024, contributing to revenue and margin improvements.
- DSGR's strategic investments in salesforce transformation and e-commerce enhancements are expected to drive future growth.
- The company has a strong M&A pipeline and continues to explore strategic acquisitions to enhance its market position.
Negative Points
- Revenue was slightly softer than budgeted, indicating potential challenges in meeting growth expectations.
- The Canadian division faced sales softness due to market disruptions and currency exchange headwinds.
- Military sales and salesforce transformation efforts led to a decline in organic sales for Lawson Products.
- Test Equity's margins remain below expectations due to market demand headwinds.
- The company faces uncertainties related to trade policy changes and tariff impacts, which could affect future profitability.
