Piper Sandler lowered the firm’s price target on Sprout Social to $56 from $78 and keeps an Overweight rating on the shares following the Q1 results. Investors will wonder why the company accelerated the reallocation of resources from the less than $2,000 annual recurring revenue cohort in the last 90 days, spurring $6M of accelerated churn, the analyst tells investors in a research note. The firm sees rising execution risks and thinks investors will need to see clean 30%-plus net new annual recurring revenue growth for the stock to move higher.
Published first on TheFly
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