Citi Reduces PT on SPS Commerce (SPSC), Keeps Buy

Core Insights - SPS Commerce, Inc. is identified as an oversold growth stock with a strong position in the retail supply chain network, which provides access to a larger total addressable market supporting sustainable growth [1][3] - The company utilizes network data to enhance sales targeting, which is expected to aid in revenue recovery and increase cross-selling opportunities [2] - Recent acquisitions have improved relationship management, leading to more customer interactions and upselling potential [2] Financial Outlook - The price target for SPS Commerce has been reduced from $173 to $166 due to concerns over slower growth among large customers [1][3] - The analyst anticipates a 2-point annual expansion in EBITDA margin alongside high single-digit revenue growth [3] Business Model - SPS Commerce offers cloud-based supply chain solutions that connect retail partners globally to enhance their operations [3]