SPS Commerce price target lowered to $175 from $198 at Piper Sandler

Piper Sandler analyst Quinton Gabrielli lowered the firm’s price target on SPS Commerce (SPSC) to $175 from $198 and keeps a Neutral rating on the shares. The firm notes the results in the quarter were slightly above Street estimates across the top and bottom line, while net new customer additions of just 150 came in beneath expectations. While the implied penetration rates and ARPU expansion are attractive as a longer-term story, investors will likely remain skeptical around SPS’s ability to fully attack the TAM as net customer additions continue to underwhelm, Piper adds. While management continues to prove its ability to extract leverage from the business, initial FY25 organic revenue growth of just 10%-11% will likely pressure shares, the firm says.