6 analysts have shared their evaluations of SPS Commerce (NASDAQ:SPSC) during the recent three months, expressing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 0 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $207.67, a high estimate of $222.00, and a low estimate of $178.00. Observing a 7.88% increase, the current average has risen from the previous average price target of $192.50.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive SPS Commerce. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Lachlan Brown | Redburn Atlantic | Announces | Buy | $220.00 | - |
| George Kurosawa | Citigroup | Raises | Buy | $222.00 | $213.00 |
| Scott Berg | Needham | Maintains | Buy | $205.00 | - |
| Joe Vruwink | Baird | Raises | Neutral | $178.00 | $172.00 |
| Scott Berg | Needham | Maintains | Buy | $205.00 | - |
| George Kurosawa | Citigroup | Announces | Buy | $216.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to SPS Commerce. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of SPS Commerce's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SPS Commerce's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on SPS Commerce analyst ratings.
Get to Know SPS Commerce Better
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.
SPS Commerce: Financial Performance Dissected
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: SPS Commerce's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 18.84%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.04%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): SPS Commerce's ROE stands out, surpassing industry averages. With an impressive ROE of 2.67%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): SPS Commerce's ROA excels beyond industry benchmarks, reaching 2.16%. This signifies efficient management of assets and strong financial health.
Debt Management: SPS Commerce's debt-to-equity ratio is below the industry average. With a ratio of 0.02, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.