Needham analyst Scott Berg maintained a Buy rating on Sprout Social today and set a price target of $32.00.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Sprout Social’s strong performance and strategic initiatives. The company reported a solid second quarter, surpassing expectations that were considered conservative, indicating a stable operating and demand environment. This stability, coupled with effective upmarket execution, has been a significant growth driver for Sprout Social.
Moreover, the recent acquisition of NewsWhip is a noteworthy development, as it aligns with Sprout’s product roadmap by enhancing real-time monitoring and predictive capabilities, which are expected to provide unique value. Additionally, the acquisition brings in larger average contract values compared to Sprout’s typical deal size, suggesting potential for increased revenue. These factors, along with a reiterated second-half guidance, reinforce the view of a stable demand macro environment, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $26.00 price target.