Oppenheimer analyst Koji Ikeda raised his price target for SPS Commerce to $120 from $112 after meeting with CEO Archie Black and leaving the meeting more positive on the business momentum, growth strategy, and market positioning. The analyst believes management has created a deep moat and a defensible business that is enabling trading partners in the retail industry to conduct B2B fulfillment transactions more accurately, with better visibility, and with fewer errors. On balance, the analytics product will continue to weigh on overall growth, putting a higher emphasis on fulfillment for growth, he contends. Ikeda reiterates an Outperform rating on the shares.

DA Davidson elevated SPS Commerce to the firm's 'Best-of-Breed Bison' list while maintaining a Buy rating and $220 price target on the stock. The company offers the single most stable revenue growth profile in Vertical SaaS, compounding sales reliably at over 15%, the analyst tells investors in a research note. SPS Commerce's scale also offers a substantial moat in new customer acquisition costs, the firm added.