Sprout Social price target lowered to $29 from $34 at Goldman Sachs

Goldman Sachs analyst Adam Hotchkiss lowered the firm’s price target on Sprout Social (SPT) to $29 from $34 and keeps a Neutral rating on the shares. While Sprout reported Q4 revenue largely in-line with consensus expectations, the decelerating revenue growth to 14% year over year continues to be representative of challenges the company has faced reorienting the business upmarket while elevated customer budget scrutiny impacts deal conversion, the analyst tells investors in a research note. Sprout’s FY25 revenue guidance sets a more realistic bar for growth that could allow the company to return to a beat-and-raise cadence throughout the year as comps ease, but Goldman awaits proof-points that management has stemmed the material growth slowdown to get more constructive on the shares.