SPS Commerce Is Resilient Amid Economic Slowdown: Analyst

Needham analyst Scott Berg reiterated a Buy rating on SPS Commerce, Inc.

Needham analyst Scott Berg reiterated a Buy rating on SPS Commerce, Inc. (NASDAQ:SPSC), raising the price target to $205 from $160.

The analyst remains particularly upbeat on the company’s ability to meet or exceed its current annual 15% plus revenue growth targets, even against a slower macro backdrop.

In fact, Berg thinks an economic slowdown should impact the company just by one to two points, citing that management is “comfortable” operating and growing in a recessionary environment.

The analyst notes that SPS could be more acquisitive for products over the near termThese product-based acquisitions will provide the company with cross-sell opportunities to boost functionality in a customer’s value chain, stretching from receiving just an invoice to receiving payment.

These apart, the analyst thinks that shifting complexities in the retail ecosystem is a tailwind for SPS because its platform is purpose-built for any situation or product-fulfillment format.

The analyst mentions that higher complexities will drive customers to the SPS platform value proposition versus staying with legacy solutions.

Price Action: SPSC shares are trading higher by 0.34% to $180.02 on the last check Thursday.

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