Assessing Sprout Social: Insights From 12 Financial Analysts

Analysts' ratings for Sprout Social SPT over the last quarter vary from bullish to bearish, as provided by 12 analysts.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $29.92, a high estimate of $42.00, and a low estimate of $22.00. A decline of 17.07% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Sprout Social is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Raimo Lenschow |Barclays |Lowers |Overweight | $26.00|$34.00 | |Chris Merwin |Goldman Sachs |Lowers |Neutral | $23.00|$29.00 | |Elizabeth Porter |Morgan Stanley |Lowers |Equal-Weight | $22.00|$30.00 | | Allan Verkhovski |Scotiabank |Lowers |Sector Perform | $25.00|$28.00 | |David Hynes |Canaccord Genuity |Lowers |Buy | $35.00|$40.00 | |Chris Merwin |Goldman Sachs |Lowers |Neutral | $29.00|$34.00 | |Elizabeth Porter |Morgan Stanley |Lowers |Equal-Weight | $30.00|$37.00 | |Parker Lane |Stifel |Lowers |Buy | $34.00|$45.00 | |Scott Berg |Needham |Lowers |Buy | $32.00|$55.00 | |Clarke Jeffries |Piper Sandler |Lowers |Neutral | $27.00|$29.00 | |Raimo Lenschow |Barclays |Lowers |Overweight | $34.00|$38.00 | |Surinder Thind |Jefferies |Raises |Buy | $42.00|$34.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sprout Social. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sprout Social compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Sprout Social's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Sprout Social's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Unveiling the Story Behind Sprout Social

Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. It has a centralized, secure and powerful platform that can scale horizontally across an organization to drive maximum business value. The firm generates majority revenue from software subscriptions.

Key Indicators: Sprout Social's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Sprout Social's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.43% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Sprout Social's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -13.46% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sprout Social's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -8.88%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Sprout Social's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -3.53%, the company showcases efficient use of assets and strong financial health.

Debt Management: Sprout Social's debt-to-equity ratio is below the industry average. With a ratio of 0.26, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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