William Blair analyst Arjun Bhatia has reiterated their neutral stance on SPT stock, giving a Hold rating on August 26.
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Arjun Bhatia has given his Hold rating due to a combination of factors involving recent leadership changes and current market valuation. The unexpected resignation of Sprout Social’s Chief Revenue Officer, Mike Wolff, who had been with the company for a relatively short period, introduces potential risks related to the company’s go-to-market strategy. However, the reaffirmation of the company’s guidance for the third quarter and the full year 2025 provides some reassurance.
Despite the leadership transition, Sprout Social’s stock is trading at a lower multiple compared to its peers, which suggests a favorable risk/reward balance. The company’s efforts in stabilizing its operations and delivering more consistent results are positive signs, yet the market is anticipating evidence of accelerated growth. Until such growth is observed, Bhatia maintains a Hold rating, indicating a wait-and-see approach before making further recommendations.
In another report released on August 26, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $15.50 price target.