SPS Commerce: Resilient Growth Amid Macroeconomic Challenges with Strong Buy Rating

In a report released today, Scott Berg from Needham maintained a Buy rating on SPS Commerce (SPSC – Research Report), with a price target of $210.00.

Scott Berg has given his Buy rating due to a combination of factors that highlight SPS Commerce’s resilience and growth potential. The company reported strong first-quarter results, demonstrating a robust growth model despite a challenging macroeconomic environment. Berg notes that SPS Commerce remains largely unaffected by tariffs, which is expected to improve market sentiment as the company continues to add new customers at a pace exceeding recent trends.
Despite some challenges in the Analytics segment, which saw a slight year-over-year revenue decline, the overall impact on the company’s revenue is minimal. The management’s decision to maintain their fiscal year 2025 guidance reflects a cautious approach amid macroeconomic uncertainties. However, Berg views the company’s 13% organic recurring revenue growth in the first quarter as a positive indicator that SPS Commerce can sustain double-digit organic revenue growth in the medium term.

In another report released on April 21, Citi also maintained a Buy rating on the stock with a $162.00 price target.