Oppenheimer analyst Koji Ikeda maintained a Buy rating on SPS Commerce (NASDAQ: SPSC) today and set a price target of $83. The company’s shares closed yesterday at $75.78, close to its 52-week high of $76.93.
Ikeda commented:
“We think SPS Commerce is going a good job managing the business while navigating a retail industry with challenges in the near term that should become growth opportunities in the future. We recently met with CFO Kim Nelson and come away feeling more confident in the business’s positioning, value proposition and differentiation, and management’s ability to execute the balanced growth and profitability framework. Bottom line: We believe SPS Commerce is a strategic software vendor in the retail industry, and that the good execution displayed over the past several quarters is likely to continue in the future, increasing our comfort that the 2020 financials targets of adj. EBITDA of $65M+ (>low-20%s adj. EBITDA margins), and a $300M+ revenue run-rate exiting 2020 are achievable. Reiterate Outperform, raise PT to $83 (from $72).”
According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 39.8% and a 100.0% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, Liveperson, and Autodesk.
SPS Commerce has an analyst consensus of Moderate Buy, with a price target consensus of $75.
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Based on SPS Commerce’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $3.25 million. In comparison, last year the company had a net profit of $2.97 million.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock.
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SPS Commerce, Inc. engages in the provision of cloud-based supply chain management solutions company, which network-proven fulfillment, sourcing, and item assortment management solutions, along with comprehensive retail performance analytics to thousands of customers worldwide.
