Expert Ratings For Sprout Social

In the latest quarter, 12 analysts provided ratings for Sprout Social SPT, showcasing 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 provide deeper insights through their assessments of 12-month price targets, revealing an average target of $74.83, a high estimate of $83.00, and a low estimate of $66.00. This current average reflects an increase of 14.42% from the previous average price target of $65.40.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Sprout Social's perception among financial experts is painted 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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sprout Social. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sprout Social compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Sprout Social's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Sprout Social's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

Delving into Sprout Social's Background

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.

Key Indicators: Sprout Social's Financial Health

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 34.34% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -21.45%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Sprout Social's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -13.89%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Sprout Social's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -5.04%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Sprout Social's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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