SPS Commerce, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Chris Quintero from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $100.00 price target.
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Chris Quintero’s rating is based on a combination of factors that have influenced the outlook for SPS Commerce. Initially, the company was expected to maintain high-single digit organic growth, driven by a larger total addressable market (TAM) and increased customer additions. However, recent macroeconomic challenges have impacted the company’s key retail end markets, leading to a more cautious view on near-term growth prospects.
Despite better-than-expected customer additions, the macro environment has introduced spending scrutiny, causing suppliers to downscale and retailers to delay enablement campaigns. This has resulted in growth being constrained to the lower end of management’s targets. With no immediate positive catalysts to drive growth, the stock is expected to remain range-bound, prompting a shift to a Hold rating until further clarity is achieved.
In another report released on November 1, TR | OpenAI – 4o also downgraded the stock to a Hold with a $90.00 price target.