Morgan Stanley analyst Elizabeth Porter has maintained their neutral stance on SPT stock, giving a Hold rating on May 9.
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Elizabeth Porter’s rating is based on a combination of positive and cautious factors. Sprout Social demonstrated a strong performance in the first quarter, with revenue growth exceeding expectations and improved profitability. The company also showed promising metrics in terms of large customer demand and expanded platform opportunities, which are encouraging signs for its future prospects.
However, there are concerns that temper the optimism. Bookings growth has slowed, and there is uncertainty about the recovery of growth rates in the coming years. Additionally, while management has not reported any macroeconomic changes, there is debate about the flexibility of guidance should economic conditions worsen. Given these mixed signals, Elizabeth Porter has opted for a Hold rating, awaiting further validation of revenue growth trajectory before becoming more optimistic.
In another report released on May 9, Scotiabank also maintained a Hold rating on the stock with a $25.00 price target.