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Investing.com - DA Davidson has reiterated its Neutral rating and $9.00 price target on Sprinklr Inc (NYSE:CXM), which currently trades at $7.77, as the company continues its turnaround strategy. According to InvestingPro data, the stock has shown resilience with a 6.87% return over the past year, despite broader market volatility.
The research firm is monitoring Sprinklr’s execution of its plan to reaccelerate revenue growth back to double digits and achieve "Rule of 40" status, a benchmark combining growth rate and profit margin. The company has demonstrated profitability with a healthy 69.94% gross margin and positive earnings of $0.45 per share over the last twelve months.
DA Davidson now sees a better setup in fiscal year 2027 for Sprinklr to gradually ramp up top-line growth through year-end, leading the firm to increase its FY27 total revenue estimates, which now imply 5% growth year-over-year. The company maintains a strong financial position with more cash than debt on its balance sheet, one of several positive indicators highlighted in InvestingPro’s comprehensive analysis, which includes 7 additional key insights available to subscribers.
Despite being incrementally more positive about the FY27 growth outlook, the firm continues to identify near-term challenges for Sprinklr, including an evolving competitive landscape and go-to-market changes.
DA Davidson is maintaining its Neutral rating on the stock and keeping its price target under review until Sprinklr’s third-quarter fiscal 2025 results are released.
In other recent news, Sprinklr reported its second-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $0.13, exceeding the forecasted $0.1002. The company also reported revenue of $212 million, which outperformed the anticipated $205.4 million and represented an 8% year-over-year growth. Subscription revenue increased by 6%, while professional services revenue saw a 22% rise. Despite these strong financial results, Sprinklr’s stock experienced a decline of approximately 8%, which analysts attribute to concerns about future growth prospects and strategic shifts. Additionally, Sprinklr announced the launch of new AI capabilities, including Sprinklr Copilot and Sprinklr AI Agents, aimed at enhancing customer experience on its platform. These developments are part of the company’s efforts to innovate and expand its offerings in customer experience management. The recent updates reflect Sprinklr’s ongoing commitment to advancing its technological capabilities and responding to market demands.
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