Oppenheimer Believes SPS Commerce (SPSC) Still Has Room to Grow

In a report issued on March 15, Koji Ikeda from Oppenheimer assigned a Buy rating to SPS Commerce (SPSC), with a price target of $120. The company’s shares closed on Friday at $106.69, close to its 52-week high of $113.31.

Ikeda noted:

“We recently met with SPC Commerce’s CEO and left the meeting more positive on the business momentum, growth strategy, and market positioning. We believe management has created a deep moat and a defensible business that is enabling trading partners in the retail industry to conduct B2B fulfillment transactions more accurately, with better visibility, and with fewer errors. On balance, the analytics product will continue to weigh on overall growth, putting a higher emphasis on fulfillment for growth. Bottom line: We believe management is doing a very good job navigating challenging retail industry operating trends, successfully delivering on its growth and profitability framework. We anticipate the good results the business has been delivering to continue in future reported results. Reiterate Outperform, PT to $120 (from $112).”

According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 37.0% and a 95.8% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, BlackLine Inc, and Liveperson.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for SPS Commerce with a $109.60 average price target.

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Based on SPS Commerce’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $7.14 million. In comparison, last year the company had a GAAP net loss of $9.1 million.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock.

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SPS Commerce, Inc. provides cloud-based supply chain management services. The firm serves retailers, suppliers, grocers, distributors and logistics firms to orchestrate the management of item data, order fulfillment, inventory control and sales analytics across all channels.

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