Loop downgrades SPS Commerce to Hold on more cautious outlook

Loop Capital downgraded SPS Commerce (SPSC) to Hold from Buy with a price target of $120, down from $175. The company’s “reasonably good” Q2 results were overshadowed by lower expectations for the second half of 2025 and management’s more cautious outlook for 2026, the analyst tells investors in a research note. The firm says SPS’s revised guidance reflects elongated sales cycles with new small business customers and upsells, driven by increased market uncertainty surrounding tariffs and consumer spending. Loop now expects the stock will trade sideways for some time.