In a recent update, Citi has revised its price target for SPS Commerce (SPSC, Financial), reducing it from $200 to $162 while maintaining a Buy rating on the stock. This adjustment comes as the firm approaches the first quarter earnings period for the application software sector with caution, highlighting concerns over tariff exposure, potential deal delays, and the impact of currency fluctuations on full-year projections.
Citi's chief investment officer survey indicated a marginal decline in budget growth expectations over the next 12 months. There is also a noted negative sentiment towards tariff-affected back-office projects, contributing to the firm's cautious stance. These factors are believed to pose significant short-term risks, particularly for companies like BlackLine (BL) and OneStream (OS), where deal delays are expected to persist into the second quarter.
Conversely, Citi identifies Intapp (INTA) and Vertex (VERX) as having a greater degree of resilience against these macroeconomic challenges. The firm believes these companies are better insulated from the prevailing market uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for SPS Commerce Inc (SPSC, Financial) is $201.75 with a high estimate of $245.00 and a low estimate of $154.00. The average target implies an upside of 56.32% from the current price of $129.06. More detailed estimate data can be found on the SPS Commerce Inc (SPSC) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, SPS Commerce Inc's (SPSC, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SPS Commerce Inc (SPSC, Financial) in one year is $256.68, suggesting a upside of 98.88% from the current price of $129.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SPS Commerce Inc (SPSC) Summary page.
