Sprout Social initiated with an Outperform at Oppenheimer

Oppenheimer analyst Brian Schwartz initiated coverage of Sprout Social with an Outperform rating and $76 price target. The analyst sees a pending inflection in the company’s net new customer growth. Sprout is well positioned to benefit from a pickup in the second half of 2024 marketing software spending growth and move into customer care, the analyst tells investors in a research note. The firm thinks Sprout Social can sustain an “upper-echelon” software-as-a-service industry growth rate and exceed $1B-plus in revenue by 2028 or sooner while increasing operating profitability.