Evaluating Sprout Social: Insights From 7 Financial Analysts

Across the recent three months, 7 analysts have shared their insights on Sprout Social SPT, expressing a variety of opinions spanning from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over 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 $44.29, a high estimate of $55.00, and a low estimate of $28.00. This current average represents a 9.0% decrease from the previous average price target of $48.67.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Sprout Social by financial experts. The following summary presents 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: 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: Delving into movements, analysts provide estimates for the future value of Sprout Social's stock. This analysis reveals shifts in analysts' expectations over time.

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.

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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.

Sprout Social: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Sprout Social displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 25.32%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -16.99%, the company showcases strong profitability and 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 -11.28%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Sprout Social's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -4.31%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Sprout Social's debt-to-equity ratio is below the industry average at 0.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts 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.

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