Sprinklr (CXM – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Elizabeth Porter from Morgan Stanley maintained a Hold rating on the stock and has a $10.00 price target.
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Elizabeth Porter’s rating is based on several factors that reflect both progress and caution in Sprinklr’s current performance and outlook. The company has shown operational improvements, as evidenced by its Q1 subscription revenue surpassing guidance by approximately 1%, with similar expectations for Q2. Despite a challenging macroeconomic environment, Sprinklr has maintained its full-year revenue guidance, indicating a balanced approach to growth and caution.
Additionally, the company’s efforts to control expenses have resulted in an operating margin that exceeded expectations, even after accounting for foreign exchange headwinds. While there is early success in engaging with top customers through ‘Project Bearhug,’ Porter emphasizes the need for patience as the company continues its transformation journey. The stock’s valuation at 2.2x EV/S reflects the ongoing turnaround story, suggesting that while there is potential for growth, it is prudent to maintain a Hold rating until further progress is realized.
Porter covers the Technology sector, focusing on stocks such as Autodesk, Sprinklr, and Amplitude. According to TipRanks, Porter has an average return of -2.1% and a 44.58% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a $10.00 price target.