- Analysts cut price targets on Sprinklr Inc CXM despite the Q3 beat and positive Q4 outlook.
- Oppenheimer analyst Brian Schwartz lowered the price target to $23 from $29 (70% upside) and kept an Outperform, citing recent SaaS group multiples compression.
- The company executed well in its Q3 with a "beat-and-raise," accelerating growth metrics across the leading indicators, 32% short-term billings growth, and promising considerable deals momentum offset by some deceleration in the Q4 guidance, Schwartz tells.
- However, he believes the guidance could prove conservative given the strong Q3 bookings.
- The good sales execution and accelerating growth seen in the Q3 results support the firm's bullish view of Sprinklr.
- Schwartz believes the company stands well-positioned to capitalize on a large and fast-growing experience management market, but valuation is not fully reflecting the growth potential.
- Barclays analyst Raimo Lenschow lowered the price target to $23 from $27 and kept an Overweight.
- Post the earnings report, the Sprinklr story, which has fallen out of favor lately, is ready for investors to take another look at, Lenschow tells.
- He feels the stock is "especially compelling" at the current multiple of five-times estimated 2023 sales.
- JPMorgan analyst Mark Murphy upgraded to Overweight from Neutral with a price target of $20, down from $22 (48% upside).
- The 48% pullback in the shares "creates a dislocation," Murphy says.
- With over 90% recurring-in-nature revenue, Sprinklr's financial model provides it with a high degree of revenue visibility, says the analyst.
- Murphy adds that although the company's growth has slowed during the pandemic into the high-teens, its growth profile should improve over the next couple of years going into the low to mid-twenties, on a subscription revenue basis.
- Wells Fargo analyst Michael Turrin maintained Sprinklr with an Equal-Weight and lowered the price target to $15 from $20, suggesting an 11% upside.
- Price Action: CXM shares traded higher by 7.70% at $14.55 in the premarket session on the last check Friday.
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