William Blair analyst Arjun Bhatia has reiterated their neutral stance on SPT stock, giving a Hold rating on August 11.
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Arjun Bhatia has given his Hold rating due to a combination of factors surrounding Sprout Social’s current market position and future prospects. The company’s management has recently terminated their previous stock sale plans, indicating their belief that the stock is undervalued. They are considering repurchasing shares, which suggests confidence in the company’s long-term potential.
Despite these positive signals, the company’s growth is stabilizing rather than accelerating, with organic growth in the low-double-digit range. Investors are still waiting for a significant growth inflection, and key areas to watch include upmarket momentum and new opportunities in data exports and influencer marketing. While Sprout Social’s valuation is lower compared to similar companies, the market is looking for clear signs of growth reacceleration before a more favorable rating can be justified.
In another report released on August 11, Morgan Stanley also maintained a Hold rating on the stock with a $17.00 price target.