Decoding 5 Analyst Evaluations For Sprout Social

5 analysts have shared their evaluations of Sprout Social SPT during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $68.8, with a high estimate of $75.00 and a low estimate of $58.00. Observing a 19.13% increase, the current average has risen from the previous average price target of $57.75.

Interpreting Analyst Ratings: A Closer Look

The standing of Sprout Social among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Sprout Social. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sprout Social compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Sprout Social's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Sprout Social's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

Unveiling the Story Behind Sprout Social

Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.

Financial Milestones: Sprout Social's Journey

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 30.97% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Sprout Social's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -26.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sprout Social's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -15.65%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Sprout Social's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -6.35%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.65, Sprout Social adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.