Sprinklr Faces Challenges Amid Transition: Sell Rating Due to Declining Growth and High Valuation

In a report released yesterday, Michael Berg from Wells Fargo maintained a Sell rating on Sprinklr (CXM – Research Report), with a price target of $7.00.

Michael Berg has given his Sell rating due to a combination of factors related to Sprinklr’s current financial performance and future outlook. Despite some signs of stabilization in the company’s growth, there are ongoing concerns about declining net dollar expansion rates and a decrease in large customer accounts. These issues highlight the challenges Sprinklr faces in its transition year, as it works to improve its go-to-market execution.
Additionally, while the company has shown modest revenue growth and exceeded expectations in free cash flow, the overall performance remains below historical averages. The updated guidance for fiscal year 2026 suggests cautious optimism, but the need for sustained stability over multiple quarters remains a concern. The valuation of Sprinklr’s shares, trading at relatively high multiples, further supports the Sell rating, given the slowing growth trajectory and the significant transition period the company is navigating.

In another report released yesterday, Barclays also maintained a Sell rating on the stock with a $9.00 price target.

CXM’s price has also changed slightly for the past six months – from $8.640 to $9.060, which is a 4.86% increase.