The Analyst Verdict: Sprout Social In The Eyes Of 13 Experts


Ratings for Sprout Social SPT were provided by 13 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 6 0 0 0
Last 30D 0 1 0 0 0
1M Ago 2 3 0 0 0
2M Ago 3 0 0 0 0
3M Ago 2 2 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $74.77, a high estimate of $83.00, and a low estimate of $66.00. Marking an increase of 18.95%, the current average surpasses the previous average price target of $62.86.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Sprout Social by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jason Ader Keybanc Announces Overweight $83.00 -
Raimo Lenschow Barclays Lowers Overweight $72.00 $75.00
Brett Knoblauch Cantor Fitzgerald Maintains Overweight $74.00 -
Clarke Jeffries Piper Sandler Raises Overweight $66.00 $62.00
David Hynes Canaccord Genuity Maintains Buy $70.00 -
Scott Berg Needham Maintains Buy $75.00 -
Surinder Thind Jefferies Announces Buy $76.00 -
Chris Merwin Goldman Sachs Raises Buy $81.00 $65.00
Chris Merwin Goldman Sachs Raises Buy $81.00 $65.00
Parker Lane Stifel Raises Buy $70.00 $60.00
Scott Berg Needham Maintains Buy $75.00 -
Raimo Lenschow Barclays Raises Overweight $75.00 $65.00
Brett Knoblauch Cantor Fitzgerald Raises Overweight $74.00 $48.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sprout Social. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sprout Social compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Sprout Social's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

Discovering Sprout Social: A Closer Look

Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.

Unraveling the Financial Story of Sprout Social

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 34.34% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Sprout Social's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -21.45%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Sprout Social's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -13.89%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Sprout Social's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -5.04%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Sprout Social's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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