Northland Securities analyst Tim Klasell maintained a Buy rating on SPS Commerce (SPSC) today and set a price target of $125. The company’s shares closed yesterday at $105.86.
Klasell noted:
“We do not expect any major surprises in Q2 results, though a tough comparable (large Walgreens campaign in 2Q18) will be a headwind to Y/Y metrics. We are modeling roughly 200bp of annual EBITDA margin leverage primarily from a lesser extent GM and G&A. R&D is the one expense line which will not drive leverage going forward (already only ~9% of revenue). Given the large growth runway remaining ahead of the company in its core market, we do not believe management is likely to lose focus and overextend to chase growth.”
According to TipRanks.com, Klasell is a 5-star analyst with an average return of 18.1% and a 70.2% success rate. Klasell covers the Technology sector, focusing on stocks such as ServiceSource International Inc, Tyler Technologies, and Zix Corporation.
Currently, the analyst consensus on SPS Commerce is a Strong Buy with an average price target of $120.
See today’s analyst top recommended stocks >>
Based on SPS Commerce’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $6.81 million. In comparison, last year the company had a net profit of $3.25 million.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
