Sprout Social price target lowered to $43 from $76 at Oppenheimer

Oppenheimer lowered the firm’s price target on Sprout Social to $43 from $76 and keeps an Outperform rating on the shares. Sprout had a challenging Q1 that featured poor sales execution and increasing seasonality leading to a sizable guide down of the 2024 revenue guidance, less metrics, and another leadership transition, the analyst tells investors in a research note. The quarter update will elevate the bear thesis that a confluence of events are combining to raise concerns around the model predictability and durability of growth, the firm says, adding that the good news is that revenue guidance is likely cut to a level that significantly lowers expectations.