DA Davidson reiterates Neutral rating on SPS Commerce stock at $125 target

Published 25/09/2025, 14:20
DA Davidson reiterates Neutral rating on SPS Commerce stock at $125 target

Investing.com - DA Davidson maintained its Neutral rating and $125.00 price target on SPS Commerce (NASDAQ:SPSC) following the company’s 2025 investor day event. The stock, currently trading at $107.49, sits near its 52-week low of $102.05, despite InvestingPro analysis indicating potential undervaluation.

The research firm noted that while the investor day did not include new product announcements, it provided insights into SPS Commerce’s product roadmap and generative AI strategy.

Management devoted significant time during the presentation to explaining the company’s updated high-single-digit organic year-over-year growth outlook and long-term plans to capture a larger share of its expanding total addressable market.

The investor day also featured a customer panel followed by a question-and-answer session, giving analysts additional perspective on the company’s market position.

DA Davidson analyst coverage of SPS Commerce has transitioned to Clark Wright, who maintains the firm’s $125 price target based on 22 times the company’s projected 2026 free cash flow.

In other recent news, SPS Commerce has been the subject of multiple analyst updates following its Investor and Analyst Days. DA Davidson downgraded the stock from Buy to Neutral, adjusting the price target to $125.00 from $175.00. This change reflects a revised growth outlook, with projections now indicating high single-digit organic growth beyond 2025. Meanwhile, Needham reaffirmed its Buy rating, setting a price target of $160.00, despite lowering it from $210.00 due to tariff concerns. Needham noted that SPS Commerce’s second-quarter results exceeded expectations, though revenue was on the lower end of the historical range.

Cantor Fitzgerald also lowered its price target to $135.00 from $170.00, maintaining an Overweight rating after highlighting the company’s network strength and AI opportunities. Stifel adjusted its price target to $150.00 from $165.00, citing macroeconomic concerns while keeping a Buy rating. These developments indicate varied analyst perspectives on SPS Commerce’s future growth potential and strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.