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In a challenging market environment, SPS Commerce , Inc. (NASDAQ:SPSC) stock has recorded a new 52-week low, dipping to $121.74. According to InvestingPro data, the company maintains a "GREAT" financial health score, with strong cash position and zero debt concerns. The cloud-based supply chain management solutions provider has faced significant headwinds over the past year, with a YTD decline of 29.55%. Despite the recent pullback, analysts maintain optimism with price targets ranging from $163 to $245. Investors are closely monitoring the company’s performance as it navigates through the pressures of a dynamic market landscape, which has seen many technology stocks retreat from their previous highs. The current price level marks a critical point for SPSC, as market participants consider the company’s future growth prospects and strategic initiatives to rebound from this low. With revenue growth of 18.78% in the last twelve months and projected 19% growth for the coming year, the company shows promising fundamentals despite current market pressures. For deeper insights into SPSC’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, SPS Commerce reported its fourth-quarter earnings, revealing an earnings per share (EPS) of $0.89, which surpassed the consensus estimate of $0.87. The company also reported revenue of $170.9 million, exceeding expectations of $168.76 million and marking an 18% increase from the same quarter in 2023. Despite these positive results, SPS Commerce’s guidance for the first quarter and full-year 2025 fell short of analyst projections, with first-quarter EPS expected to range from $0.82 to $0.84, below the consensus of $0.92.
In terms of analyst actions, Needham maintained its Buy rating with a $210 target, while Stifel adjusted its price target to $200 from $225 but also retained a Buy rating. Meanwhile, DA Davidson reiterated a Buy rating and a $245 price target, highlighting the company’s strong EBITDA margin guidance and increased total addressable market (TAM) estimate. Citi also maintained a Buy rating, albeit with a reduced price target of $200, citing concerns over organic growth but noting potential paths to improved growth.
SPS Commerce has also expanded its board of directors, appointing Razat Gaurav as a new independent director. This appointment follows the decision to increase the board size and the upcoming retirement of board member James Ramsey. These developments come as the company navigates a challenging macroeconomic environment, with strategic mergers and acquisitions anticipated to support ongoing growth.
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