SAP sued by o9 Solutions over alleged trade secret theft
Investing.com - SPS Commerce (NASDAQ:SPSC) stock rating was downgraded from Buy to Hold by Stifel on Friday, with the price target significantly reduced to $80.00 from $150.00. The stock is currently trading at $103.89, nearly 50% below its 52-week high of $201.06, and has declined 43.5% year-to-date according to InvestingPro data.
The downgrade comes as SPS Commerce faces mounting macroeconomic headwinds and increased spending scrutiny within the retail ecosystem, creating uncertainty around the company’s near and mid-term revenue performance. Despite these challenges, InvestingPro analysis indicates the company appears undervalued based on its Fair Value assessment, with strong financial fundamentals including an impressive Altman Z-Score of 19.74.
Stifel noted that SPS Commerce’s third-quarter revenue, fourth-quarter guidance, and initial outlook for 2026 all fell below consensus expectations. Management cited delayed Relationship Management campaigns with retailers, ongoing supplier challenges, spending scrutiny, and unexpected seasonality in the newer Revenue Recovery segment as factors impacting growth prospects. Nevertheless, the company has maintained 20.5% revenue growth over the last twelve months and remains profitable, with a healthy current ratio of 1.82 indicating strong liquidity.
The company is also experiencing leadership changes, with long-time Executive Vice President and Chief Revenue Officer Dan Juckiness retiring at year-end. Eduardo Rosini, who previously held positions at Sage, Intuit, and Microsoft, will join as Executive Vice President and Chief Commercial Officer on December 1.
Despite acknowledging SPS Commerce’s strong competitive positioning and sizable market opportunity, Stifel believes investors will need to see clear signs of stabilization or improvement in the end-market before regaining confidence in the company’s growth trajectory.
In other recent news, SPS Commerce Inc. reported its third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.13, compared to the forecasted $1.00. However, the company experienced a slight shortfall in revenue, reporting $189.9 million against the anticipated $192.68 million, marking a revenue surprise of -1.44%. These developments highlight a mixed financial performance, with strong earnings but slightly underwhelming revenue figures. While the earnings report was positive in terms of EPS, the revenue miss indicates areas for potential improvement. Investors and analysts may be closely watching how SPS Commerce addresses this revenue gap in future quarters. The earnings results are a crucial factor for stakeholders assessing the company’s financial health. These recent developments are important for investors looking to understand SPS Commerce’s current market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.