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Key Takeaways From SPS Commerce Analyst Ratings

Author: Benzinga Insights | April 26, 2024 11:00am

4 analysts have shared their evaluations of SPS Commerce (NASDAQ:SPSC) during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 0 1 0 0
Last 30D 1 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 1 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for SPS Commerce, presenting an average target of $201.0, a high estimate of $216.00, and a low estimate of $178.00. This current average reflects an increase of 16.86% from the previous average price target of $172.00.

price target chart

Decoding Analyst Ratings: A Detailed Look

The perception of SPS Commerce by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Joe Vruwink Baird Raises Neutral $178.00 $172.00
Scott Berg Needham Maintains Buy $205.00 -
George Kurosawa Citigroup Announces Buy $216.00 -
Scott Berg Needham Maintains Buy $205.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SPS Commerce. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SPS Commerce compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SPS Commerce's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SPS Commerce's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on SPS Commerce analyst ratings.

Unveiling the Story Behind SPS Commerce

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.

Financial Insights: SPS Commerce

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, SPS Commerce showcased positive performance, achieving a revenue growth rate of 18.81% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SPS Commerce's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.11%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): SPS Commerce's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.94% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.36%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.02, SPS Commerce adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: SPSC

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