Decoding 16 Analyst Evaluations For Sprout Social
In the preceding three months, 16 analysts have released ratings for Sprout Social (NASDAQ:SPT), presenting a wide array of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 5 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 4 | 4 | 5 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $56.62, with a high estimate of $83.00 and a low estimate of $40.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.44%.
Understanding Analyst Ratings: A Comprehensive Breakdown
The standing of Sprout Social among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Scott Berg | Needham | Maintains | Buy | $55.00 | $55.00 |
| Scott Berg | Needham | Maintains | Buy | $55.00 | $55.00 |
| Chris Merwin | Goldman Sachs | Lowers | Neutral | $44.00 | $80.00 |
| David Hynes | Canaccord Genuity | Lowers | Buy | $50.00 | $70.00 |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $49.00 | $65.00 |
| Brett Knoblauch | Cantor Fitzgerald | Lowers | Overweight | $46.00 | $74.00 |
| Raimo Lenschow | Barclays | Lowers | Overweight | $50.00 | $72.00 |
| Brian Schwartz | Oppenheimer | Lowers | Outperform | $43.00 | $76.00 |
| Scott Berg | Needham | Lowers | Buy | $55.00 | $75.00 |
| Rob Oliver | Baird | Lowers | Neutral | $45.00 | $72.00 |
| Clarke Jeffries | Piper Sandler | Lowers | Neutral | $40.00 | $66.00 |
| Scott Berg | Needham | Maintains | Buy | $75.00 | - |
| Brian Schwartz | Oppenheimer | Announces | Outperform | $76.00 | - |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $65.00 | $73.00 |
| Scott Berg | Needham | Maintains | Buy | $75.00 | - |
| Jason Ader | Keybanc | Announces | Overweight | $83.00 | - |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sprout Social. This information offers 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 explore the dynamics of price targets, providing estimates for the future value of Sprout Social's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sprout Social's market standing. Stay informed and make well-considered decisions with our Ratings Table.
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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.
Sprout Social: A Financial Overview
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Sprout Social's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 28.68%. This signifies a substantial increase in the company's 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 net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -14.03%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Sprout Social's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -9.31%, 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 -3.45%, 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 0.43.
How Are Analyst Ratings Determined?
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.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.