Scott Berg, an analyst from Needham, maintained the Buy rating on SPS Commerce. The associated price target was lowered to $160.00.
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Scott Berg has given his Buy rating due to a combination of factors influencing SPS Commerce’s performance. Despite the company’s revenue being on the lower end of its historical range, it has outperformed second-quarter estimates and shown positive customer metrics. The current macroeconomic conditions and tariff uncertainties are impacting supply chain software purchasing decisions, which has led to a cautious approach by suppliers regarding new software expansions and ERP replacements. However, retailers are still actively seeking enhanced supply chain automation, indicating a sustained demand for SPS Commerce’s offerings.
While the company’s new medium growth targets are slightly below expectations, aiming for high single digits instead of over 10%, this is counterbalanced by better-than-expected annual adjustments. This suggests a stable outlook for the company, supporting the Buy rating as SPS Commerce continues to adapt and perform well under challenging conditions.
In another report released on July 29, Citi also maintained a Buy rating on the stock with a $23.50 price target.