Needham analyst Scott Berg has reiterated their bullish stance on SPT stock, giving a Buy rating today.
Scott Berg has given his Buy rating due to a combination of factors that highlight Sprout Social’s strong performance and strategic positioning. The company reported a robust fourth quarter, exceeding expectations, with significant growth driven by its success in the upmarket segment. A notable achievement was closing its largest new business deal, where the integration with Service Cloud played a crucial role, underscoring Sprout’s competitive edge in this area.
Additionally, the company’s current remaining performance obligations (CRPO) saw a substantial increase, indicating healthy demand. Although the guidance for 2025 was more conservative than anticipated, it reflects a strategic shift towards a more predictable and consistent growth trajectory. This approach is expected to stabilize demand and reduce volatility, supporting the Buy rating as Sprout Social is poised for continued success in its market.
In another report released today, Barclays also maintained a Buy rating on the stock with a $34.00 price target.