A fresh capital raise from Descartes Systems Group (Descartes Systems Group Stock Quote, Chart NASDAQ:DSGX) leaves the logistics company with a balance sheet primed for more M&A, says Daniel Rosenberg, analyst for Haywood Capital Markets. In a client update on Wednesday, Rosenberg maintained his \u201cBuy\u201d recommendation and $44.00 target. On Tuesday after market close, Descartes announced the start of a marketed public offering for six million shares, which with a further option for 900,000 shares would amount to about $269 million. The company intends to use the proceeds to repay outstanding debt, for general corporate purposes and future M&A activity. (All figures in US dollars.) Rosenberg notes that as of end of last quarter, Descartes had $29.6 million in cash and debt of $242.7 million, which together represents a 2.1x net debt to EBITDA ratio. DSG\u2019s M&A activity should continue unabated, says Rosenberg, who writes, \u201cWith 43 acquisitions completed since 2006 and a large runway of targets we expect the Company to continue to pursue disciplined accretive M&A and this capital raise only leaves the Company better positioned for larger potential deals." \u201cDescartes represents a stable, cash generating business for investors," he adds. "The Company has consistently demonstrated its ability to deliver strong results and execute on M&A. We believe investors will continue to be rewarded in the long-term as Descartes consolidates the sector. Along with its track record of disciplined M&A, our investment thesis is also predicated on the Company\u2019s highly recurring revenue, high EBITDA margins, and strong management team.\u201d Rosenberg is calling for fiscal 2019 revenue and EBITDA of $275.2 million and $93.9 million, respectively, and fiscal 2020 revenue and EBITDA of $324.7 million and $119.0 million, respectively. His $44.00 target represented a projected return on investment of 12.8 per cent at the time of publication.