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Deep Dive Into Sprout Social Stock: Analyst Perspectives (8 Ratings)

Author: Benzinga Insights | August 22, 2024 09:00am

During the last three months, 8 analysts shared their evaluations of Sprout Social (NASDAQ:SPT), revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

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

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $45.62, a high estimate of $55.00, and a low estimate of $28.00. A decline of 7.16% from the prior average price target is evident in the current average.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Sprout Social. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jackson Ader Keybanc Announces Underweight $28.00 -
Rob Oliver Baird Raises Neutral $40.00 $38.00
Brett Knoblauch Cantor Fitzgerald Maintains Overweight $46.00 $46.00
Scott Berg Needham Maintains Buy $55.00 $55.00
Scott Berg Needham Maintains Buy $55.00 $55.00
Raimo Lenschow Barclays Lowers Overweight $48.00 $50.00
Rob Oliver Baird Lowers Neutral $38.00 $45.00
Scott Berg Needham Maintains Buy $55.00 $55.00

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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Sprout Social compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Sprout Social's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Sprout Social's market position. Stay informed and make data-driven decisions with the assistance of 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.

All You Need to Know About 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. The firm generates majority revenue from software subscriptions.

Financial Milestones: Sprout Social's Journey

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 25.32% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Sprout Social's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -16.99%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -11.28%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.31%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Sprout Social's debt-to-equity ratio is below the industry average. With a ratio of 0.38, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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

Posted In: SPT

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