Scott Berg, an analyst from Needham, maintained the Buy rating on SPS Commerce. The associated price target remains the same with $110.00.
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Scott Berg has given his Buy rating due to a combination of factors that emerged from the recent fireside chat with SPS Commerce’s leadership at Needham’s 28th Annual Growth Conference. He sees the company’s revenue growth trajectory improving as it works through the temporary headwinds related to Amazon’s inventory changes, with some impact persisting but diminishing into early 2026. In his view, the underlying demand environment remains intact, positioning SPS Commerce well for a normalized growth profile once these transitory issues subside.
Additionally, Berg is constructive on SPS Commerce’s international opportunity, particularly in Europe, where mandated e‑invoicing is accelerating the shift toward digital supply chain solutions that align with the company’s strengths. He also highlights the company’s margin outlook, noting that gross margin improvement is expected to be the primary lever for expanding overall profitability. Taken together—an anticipated revenue recovery, structural growth drivers in Europe, and a clear path to margin expansion—these elements support his positive stance and underpin the Buy recommendation on SPSC shares.
Berg covers the Technology sector, focusing on stocks such as Five9, Freshworks, and Braze. According to TipRanks, Berg has an average return of -1.8% and a 43.00% success rate on recommended stocks.
In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $107.00 price target.