DA Davidson downgraded SPS Commerce (SPSC) to Neutral from Buy with a price target of $125, down from $175. The firm cites updates to the company’s target model, which now calls for two points of EBITDA margin expansion annually, but high single digit organic Y/Y growth rate beyond 2025 vs. the prior 15% target inclusive of M&A, the analyst tells investors in a research note. The firm adds however that SPS Q2 bottom and top line results were better than expected, giving the company increased confidence in its full year guide.
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Read More on SPSC:
- SPS Commerce: Buy Rating Affirmed Amid Challenging Conditions and Stable Outlook
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- SPS Commerce: Strong Q2 Performance Amid Macroeconomic Uncertainties Justifies Hold Rating
- SPS Commerce Reports Strong Q2 2025 Growth
- SPS Commerce downgraded to Hold from Buy at Loop Capital