SPS Commerce Soars 18.72% on Strong Earnings, Analyst Upgrades

On July 21, 2025, SPS Commerce surged 18.72% in pre-market trading, marking a significant rise in its stock price.

SPS Commerce has recently received positive attention from several analysts. Morgan Stanley initiated coverage on the company with an "overweight" rating and a $180 price target, suggesting a potential 30% upside. This optimistic outlook is based on the company's durable growth prospects, particularly as a beneficiary of tariff policies.

In addition to Morgan Stanley, other analysts have also upgraded their ratings for SPS Commerce. Wall Street Zen changed their rating from "hold" to "buy," while Cantor Fitzgerald initiated coverage with an "overweight" rating and a $170 price target. DA Davidson and Needham & Company LLC also maintained "buy" ratings with price targets of $175 and $210, respectively. Overall, the stock has an average rating of "Moderate Buy" and a consensus target price of $191.30.

SPS Commerce reported strong quarterly earnings, with earnings per share (EPS) of $1.00, surpassing analysts' estimates of $0.85. The company's revenue for the quarter was $181.55 million, up 21.4% year-over-year. This financial performance has likely contributed to the positive sentiment surrounding the stock.

Institutional investors have also shown interest in SPS Commerce. Several firms, including Commonwealth Equity Services LLC, Cibc World Markets Corp, Xponance Inc., Teacher Retirement System of Texas, and Magnetar Financial LLC, have increased their stakes in the company. This institutional support further underscores the confidence in SPS Commerce's growth potential.