Breaking Down SPS Commerce: 10 Analysts Share Their Views

In the latest quarter, 10 analysts provided ratings for SPS Commerce (NASDAQ:SPSC), showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	7	0	3	0	0
Last 30D	1	0	0	0	0
1M Ago	0	0	0	0	0
2M Ago	3	0	3	0	0
3M Ago	3	0	0	0	0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $206.9, a high estimate of $233.00, and a low estimate of $175.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 6.25%.

Investigating Analyst Ratings: An Elaborate Study

The perception of SPS Commerce by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Scott Berg	Needham	Maintains	Buy	$210.00	$210.00
Parker Lane	Stifel	Lowers	Buy	$200.00	$225.00
Joe Vruwink	Baird	Lowers	Neutral	$175.00	$188.00
Quinton Gabrielli	Piper Sandler	Lowers	Neutral	$175.00	$198.00
Nehal Chokshi	Northland Capital Markets	Lowers	Market Perform	$181.00	$209.00
Scott Berg	Needham	Lowers	Buy	$210.00	$230.00
George Kurosawa	Citigroup	Lowers	Buy	$233.00	$237.00
Scott Berg	Needham	Maintains	Buy	$230.00	$230.00
Parker Lane	Stifel	Lowers	Buy	$225.00	$250.00
Scott Berg	Needham	Maintains	Buy	$230.00	$230.00

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SPS Commerce. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of SPS Commerce's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SPS Commerce's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on SPS Commerce analyst ratings.

About SPS Commerce

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from subscription-based recurring revenue services.

SPS Commerce's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: SPS Commerce's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.9%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.27%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.09%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.73%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, SPS Commerce adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.