SPS Commerce downgraded to Neutral from Buy at Rothschild & Co Redburn

Rothschild & Co Redburn downgraded SPS Commerce (SPSC) to Neutral from Buy with a price target of $60, down from $100. The firm believes the company has a “relatively low technical moat” against AI disruption given that its business logic is predominantly explicit data rules. Rothschild sees risk that major retailers are increasingly opening direct application programming interface access for suppliers. It sees both structural and cyclical risk for SPS.