Sprout Social (NASDAQ:SPT) is rated Buy at Goldman Sachs as analysts described the company as a “leading social media management software with sustainable, premium growth opportunity.”
The price target on SPT stock is $61 per share, implying an upside potential of about 30%.
“We believe that Sprout’s significant technology investments to date, in addition to the platform’s single code-base and light services & implementation model, separates the company from peers in a way that we expect to drive meaningful share gains in the social media management software and broader front-office space,” analysts said in an initiation note.
They argue that Sprout is legitimizing its place in the broader software stack.
“While investors are likely focused on the net near-term impact of price increases on ARR growth (customer churn vs. ACV growth), we ultimately believe that Sprout’s ability to innovate relative to downmarket peers provides a durable growth opportunity in lower churn segments of the mid-market and Enterprise,” analysts concluded.
Shares are down 0.5% in pre-market Thursday.