William Blair analyst Arjun Bhatia has reiterated their neutral stance on SPT stock, giving a Hold rating today.
Arjun Bhatia has given his Hold rating due to a combination of factors including Sprout Social’s conservative full-year guidance and the current market conditions. While the company reported a modest revenue growth that slightly exceeded expectations, the initial guidance for 2025 was more conservative than anticipated, which may have led to a negative reaction from investors.
Additionally, Sprout Social’s shares are trading at a discount compared to its growth peers, reflecting a cautious approach given the challenging selling environment in the social media management space. The uncertainty surrounding the timing of market recovery and external factors influencing growth further contribute to the Hold rating, as there is limited visibility into the potential for reacceleration in the near term.
In another report released today, Goldman Sachs also maintained a Hold rating on the stock with a $29.00 price target.