SPS Commerce (SPSC) shares plummeted 5.08% during intraday trading on Friday, following a series of analyst price target reductions that signaled concerns about the company's valuation.

The stock decline came after several prominent investment firms lowered their price targets on SPS Commerce. Baird cut its target to $86 from $104 while maintaining a Neutral rating, Morgan Stanley reduced its target to $95 from $100 while keeping an Equal Weight rating, and both D.A. Davidson and Stifel slashed their targets to $65 from $80.

These downward revisions from multiple analysts, coupled with maintained Hold or Neutral ratings from firms including Cantor Fitzgerald, created negative sentiment around the stock. The collective bearish outlook from Wall Street analysts appears to have driven the selling pressure during the trading session.