Demystifying Sprout Social: Insights From 4 Analyst Reviews

Sprout Social SPT has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

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 have set 12-month price targets for Sprout Social, revealing an average target of $68.0, a high estimate of $78.00, and a low estimate of $58.00. This upward trend is evident, with the current average reflecting a 22.9% increase from the previous average price target of $55.33.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Sprout Social is derived from recent analyst actions. The following is a detailed summary of 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Sprout Social compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Sprout Social's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into Sprout Social's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Sprout Social analyst ratings.

About 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.

Understanding the Numbers: Sprout Social's Finances

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Sprout Social displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 30.97%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Sprout Social's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -26.91%, the company may encounter challenges in effective cost control.

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 is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -6.35%, the company may encounter challenges in delivering satisfactory 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: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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