Sprout Social price target raised to $78 from $70 at Piper Sandler

Piper Sandler raised the firm’s price target on Sprout Social to $78 from $70 and keeps an Overweight rating on the shares. Across enterprise software, Sprout is in the rare company of accelerating annual recurring revenue growth in 2023, the analyst tells investors in a research note. The firm says the tailwinds of pricing and new partnerships are contributing to another year of "30-handle" growth across revenue and ARR with operating margin expansion. Piper recommends investors look past any noise related to the company’s $1M services shortfall or low less than $10,000 customer additions.