SPS Commerce, Inc. (NASDAQ:SPSC) is one of the Oversold Growth Stocks to Buy According to Analysts. On September 23, George Kurosawa from Citi reduced the firm’s price target on SPS Commerce, Inc. (NASDAQ:SPSC) from $173 to $166, while reiterating a Buy rating on the stock.
The analyst highlighted the company’s strong position as a leader in the retail supply chain network. He noted that this gives the company access to a larger total addressable market, which supports sustainable growth.
Moreover, SPS Commerce, Inc. (NASDAQ:SPSC) also uses network data to improve its sales targeting. Kurosawa believes that this approach is expected to help with revenue recovery and also increase cross-selling opportunities. The analyst noted the company’s efforts in relationship management, which have improved lately as a result of recent acquisitions. He believes that this is expected to lead to more conversations and upselling with customers.
The analyst reduced the price target on concerns of slower growth in large customers. He expects the company to achieve a 2-point annual expansion in EBITDA margin, with high single-digit revenue growth.
SPS Commerce, Inc. (NASDAQ:SPSC) provides cloud-based supply chain solutions that connect retail partners worldwide to improve their operations.
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Disclosure: None. This article is originally published at Insider Monkey.
[SRC] https://finance.yahoo.com/news/citi-reduces-pt-sps-commerce-081310389.html
