- Analysts cut their price targets on Sprout Social Inc (NASDAQ:SPT) post Q4 results.
- Needham analyst Scott Berg lowered the price target to $75 from $160 (37% upside) given the significant multiple compression across high growth software but kept a Buy.
- The company's Q4 results were "impressive," highlighted by the acceleration of upmarket demand, record large customer adds driven by go-to-market execution, seat/use case expansion, and premium module uptake.
- This year, Sprout expects to accelerate growth investments while still delivering margin expansion, further cementing the company's leadership.
- Canaccord analyst David Hynes reduced the price target to $75 from $155 and kept a Buy.
- The analyst said he suspects the only real question coming out of this quarter could be the durability of net new customer growth in the 1,000+ range.
- Perhaps the mix shifts away from volume and more towards strategic value and account spend growth. However, Hynes thinks Sprout is an attractive opportunity for SMID cap growth investors.
- Piper Sandler analyst Clarke Jeffries maintained an Overweight and lowered the price target from $125 to $98 (79% upside).
- Barclays analyst Raimo Lenschow maintained an Overweight and lowered the price target from $92 to $73 (33% upside).
- Morgan Stanley maintained an Equal-Weight and lowered the price target from $110 to $70 (28% upside).
- Stifel analyst Parker Lane maintained a Buy and lowered the price target from $155 to $100 (82% upside).
- Price Action: SPT shares traded higher by 3.62% at $54.97 on the last check Wednesday.
