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On Tuesday, Cantor Fitzgerald analysts initiated coverage on Sprinklr Inc (NYSE: CXM) stock with a Neutral rating and set a price target of $8.00. According to InvestingPro data, the company currently trades at a P/E ratio of 17.6x and shows signs of being undervalued. The analysts indicated that the current valuation is reasonable, as it aligns with Sprinklr’s opportunities and risks in the market. With 12 analysts recently revising earnings estimates upward and the company maintaining a "GOOD" financial health score, investors might want to keep a close eye on Sprinklr’s upcoming earnings report on June 4.
Sprinklr has established a niche in the customer experience sector, but faces significant competition from larger, well-funded companies. The analysts expect this competitive landscape to limit growth in the low single-digit range through at least 2027. Despite these challenges, InvestingPro analysis reveals the company holds more cash than debt on its balance sheet and maintains a healthy gross profit margin of 72.15%. They also highlighted the evolving role of Agentic AI in the industry, which presents both opportunities and challenges for Sprinklr.
The company’s strategy is shifting towards improving margins and generating cash, as growth slows. Management has projected an operating margin expansion of approximately 500 basis points year-over-year in fiscal year 2026, aiming for around 16%. While the analysts acknowledge this improvement, they believe more progress is needed to attract investor interest. The company’s current revenue stands at $796.39 million, with a return on equity of 19%.
The analysts’ price target of $8.00 reflects a multiple of 21 times and 19 times their 2026 earnings per share and free cash flow estimates, respectively. They remain cautious due to the uncertainties and rapid changes in the customer experience market.
Sprinklr’s current market position and the dynamics of its industry environment have led Cantor Fitzgerald analysts to adopt a wait-and-see approach, maintaining a neutral stance on the stock.
In other recent news, Sprinklr has announced the appointment of Sanjay Macwan as its new Chief Information Officer. Macwan, with over 30 years of experience, will lead the company’s global IT and security strategy. This move is part of Sprinklr’s ongoing transformation to enhance its technology leadership and market position. In financial updates, JMP Securities has maintained its Market Outperform rating on Sprinklr, with a consistent price target of $17.00, despite broader market challenges. The firm expressed confidence in Sprinklr’s business model following investor meetings with the company’s financial leadership. Meanwhile, DA Davidson raised its price target for Sprinklr to $10.50 from $9.50, acknowledging the company’s better-than-expected fiscal fourth-quarter performance and strategic realignment. However, they retained a Neutral rating, reflecting a cautious stance on the company’s ongoing turnaround efforts. Additionally, Scotiabank (TSX:BNS) increased its price target for Sprinklr to $9.00, citing strong margin guidance for fiscal year 2026, although it maintained a Sector Perform rating.
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