Analyst Scott Berg from Needham maintained a Buy rating on Sprout Social (SPT – Research Report) and keeping the price target at $32.00.
Scott Berg has given his Buy rating due to a combination of factors including Sprout Social’s strong first-quarter financial performance, which exceeded conservative expectations despite a challenging market environment. The company achieved record-high operating and free cash flow margins, indicating a robust financial position.
Additionally, Sprout Social’s strategic decision to increase its sales capacity suggests potential for accelerated growth in the latter half of the year. The company’s success in acquiring high-value customers further underscores its market strength, even though it faces challenges in attracting smaller clients. These elements collectively contribute to a positive outlook for Sprout Social’s future performance.
According to TipRanks, Berg is an analyst with an average return of -6.7% and a 37.30% success rate. Berg covers the Technology sector, focusing on stocks such as Five9, Amplitude, and Salesforce.
In another report released today, Barclays also maintained a Buy rating on the stock with a $26.00 price target.