Sprout Social’s stock narrative has shifted following a reduction in the consensus analyst price target from $20.60 to $17.64 per share. This change suggests greater caution among market watchers. Analysts’ reassessments highlight both the resilient performance of the company and newly recognized industry headwinds. Stay tuned to see how you can keep up with the evolving outlook as more updates emerge.
🐂 Bullish Takeaways
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Baird maintained a Neutral rating on Sprout Social and noted that the company delivered a solid update in its latest quarterly results.
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Analysts recognized resilient performance and strong execution in the third quarter, which contributed positively to the current narrative.
🐻 Bearish Takeaways
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Baird significantly lowered its price target for Sprout Social, reducing it from $23 to $15 per share. This points to increased caution despite recent solid results.
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The revised price target reflects concerns over valuation and potential near-term risks, as adjustments are made to account for industry headwinds.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
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Rumors have surfaced regarding a potential takeover approach to Sprout Social, as highlighted by Ben Harrington’s Betaville blog. This speculation has drawn attention to the company’s positioning within the industry.
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Sprout Social unveiled Sprout AI, its most significant intelligence update to date. Anchored by the new proprietary Trellis AI Agent, this tool is designed to analyze vast amounts of unstructured social data. It provides actionable insights and helps organizations manage risk and improve operational efficiency.
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The company updated its financial outlook and projects Q4 2025 revenue between $118.2 million and $119.0 million. Full year 2025 revenue is forecasted between $454.9 million and $455.7 million.
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A new integration with Canva now allows users to send visuals directly from Canva to Sprout Social as draft posts. This aims to streamline creative and publishing workflows for marketing teams.
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Consensus Analyst Price Target has decreased from $20.60 to $17.64 per share, reflecting more cautious outlooks.
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Discount Rate has edged down slightly from 8.73% to 8.68%.
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Revenue Growth projections have dipped marginally from 12.08% to 12.04%.
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Net Profit Margin has fallen from 12.79% to 12.38%.
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Future P/E multiple has dropped significantly from 21.2x to 18.5x. This points to less optimistic valuation for future earnings.