SPS Commerce, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Berg from Needham maintained a Buy rating on the stock and has a $110.00 price target.
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Scott Berg has given his Buy rating due to a combination of factors that suggest the current downturn in SPS Commerce’s stock price is an overreaction. Despite the company’s recent quarterly revenue miss, which was attributed to a miscalculation in the acquired Revenue Recovery business, Berg believes this single setback does not justify the significant drop in valuation.
Berg is optimistic about the company’s future growth prospects, expecting organic growth to stabilize and eventually accelerate. He anticipates that if the macroeconomic conditions remain stable, growth could rebound to around 10% by early fiscal year 2027. Additionally, the current valuation of the shares appears attractive, trading at a lower multiple compared to similar peers, which supports his recommendation to buy the stock during this period of weakness.
In another report released on October 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $125.00 price target.