Deep Dive Into Sprout Social Stock: Analyst Perspectives (5 Ratings)
Benzinga Insights 8 months ago
Analyst Ratings
In the preceding three months, 5 analysts have released ratings for Sprout Social (NASDAQ:SPT), presenting a wide array of perspectives 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 | 2 | 1 | 1 | 1 | 0 |
| Last 30D | 1 | 0 | 1 | 1 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $10.8, a high estimate of $14.00, and a low estimate of $6.00. This current average has decreased by 44.9% from the previous average price target of $19.60.
Investigating Analyst Ratings: An Elaborate Study
In examining recent analyst actions, we gain insights into 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 | Lowers | Underweight | $6.00 | $9.00 |
| David Hynes | Canaccord Genuity | Lowers | Hold | $9.00 | $16.00 |
| Scott Berg | Needham | Lowers | Buy | $14.00 | $32.00 |
| Surinder Thind | Jefferies | Lowers | Buy | $12.00 | $15.00 |
| Raimo Lenschow | Barclays | Lowers | Overweight | $13.00 | $26.00 |
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.
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.
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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. 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.
Sprout Social's Financial Performance
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.
Revenue Growth: Sprout Social's remarkable performance in 3M is evident. As of 30 September, 2025, the company achieved an impressive revenue growth rate of 12.62%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -8.12%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Sprout Social's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -4.95%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Sprout Social's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -2.07% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.31, Sprout Social adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: What Are They?
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.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.