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SPS Commerce price target lowered to $140 from $170 at Morgan Stanley

Morgan Stanley analyst Chris Quintero lowered the firm’s price target on SPS Commerce (SPSC) to $140 from $170 and keeps an Overweight rating on the shares. Following the Q2 earnings season, peer multiples have come down across the software space, notes the analyst, who is marking the firm’s implied SPS multiple to market. Following Q2’s formal reset around management’s medium-term expectations for organic growth, the Q3 report is “likely less of a catalyst,” says the analyst, who looks to Q4 instead.

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