Loop Capital Downgrades SPS Commerce to Hold, PT Down to $120 from $175

Loop Capital Downgrades SPS Commerce to Hold, PT Down to $120 from $175

Loop Capital, a leading financial services firm, has downgraded its rating for SPS Commerce (NASDAQ: SPSC) from "Buy" to "Hold," significantly reducing its price target from $175.00 to $120.00 [1]. This move comes despite SPS Commerce’s strong second-quarter 2025 results, which exceeded analyst expectations. The company reported earnings per share (EPS) of $1.00, up from the projected $0.91, and revenue of $187.4 million, surpassing forecasts of $185.82 million [2].

Loop Capital cited fading expectations for the second half of 2025 and management’s cautious outlook for 2026 as key factors behind the rating change. The firm noted that these projections fell "meaningfully short" of both their estimates and Street consensus [1]. The revised guidance reflects elongated sales cycles with new small and medium-sized business (SMB) customers and upsells, which management attributes to increased market uncertainty surrounding tariffs and consumer spending [1].

Despite the downgrade, SPS Commerce’s stock experienced a slight decline in after-hours trading, closing at $140.1, a decrease of 0.39%. Investors and analysts are likely to keep a close eye on future developments following these results [1].

References:
[1] https://www.investing.com/news/analyst-ratings/loop-capital-downgrades-sps-commerce-stock-rating-to-hold-on-growth-concerns-93CH-4161945
[2] https://finimize.com/content/sps-commerce-stock-tumbles-despite-raised-outlook-and-strong-results