SPS Commerce initiated with a Buy at DA Davidson

DA Davidson analyst Gil Luria initiated coverage of SPS Commerce with a Buy rating and $200 price target. SPS is “the definitive retail connectivity software leader with a business that creates value from unusually strong network effects” and a network that is 5 times and 12 times the size of the closest two peers in “a fragmented global market” that favors the single player with the strongest platform, the analyst tells investors. The firm thinks SPS “is that player” and notes that it continues to invest in its portfolio of solutions and geographic expansion.