SPS Commerce (SPSC) PT Raised to $130 at Craig-Hallum on Fulfillment Strength

Craig-Hallum analyst Jeff Van Rhee raised the price target on SPS Commerce (NASDAQ: SPSC) to $130.00 (from $115.00) after Revenue / EPS came in at $83.3M / $0.40 ahead of consensus of $80.6M / $0.34. Total revenue rose 15% y/y with recurring revenue also up 15% y/y. Fulfillment (81% of revenue) was up 16% y/y organically, the highest in several years, while Analytics (12% of revenue) up just 5%.

The analyst maintained a Buy rating, stating "Dropship has been a nice tailwind and retail bankruptcies have yet to negatively impact. Behind the scenes the company continues to dramatically improve the quality/depth of the sales organization, with deeper process/best practices, and more recently, substantial capacity additions. In the midst of this strong growth, the company is both adding capacity and growing margins nicely. Cash flows remain strong. We are maintaining our Buy rating and increasing our price target to $130."

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