Barclays has adjusted its price target for Sprout Social (SPT, Financial), reducing it from $34 to $26, while maintaining an Overweight rating on the stock. This update comes as part of a broader analysis related to the first quarter earnings preview for U.S. software firms.
The investment bank suggests that the first quarter is unlikely to act as a significant catalyst for stocks in this sector. While channel checks revealed some weaknesses, they were not deemed catastrophic. Instead, the focus is expected to shift towards the future guidance provided by these companies.
Barclays notes that given the relatively minor impact of the first quarter in the overall fiscal year, it is uncertain whether many management teams will make substantial adjustments to their financial outlooks. As a result, the firm anticipates a period of uncertainty, or "limbo," until the second quarter results are available.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Sprout Social Inc (SPT, Financial) is $30.85 with a high estimate of $42.00 and a low estimate of $18.00. The average target implies an upside of 57.06% from the current price of $19.64. More detailed estimate data can be found on the Sprout Social Inc (SPT) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Sprout Social Inc's (SPT, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sprout Social Inc (SPT, Financial) in one year is $82.93, suggesting a upside of 322.25% from the current price of $19.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sprout Social Inc (SPT) Summary page.
