Sprinklr stock maintains Market Outperform rating at Citizens on AI potential

Investing.com - Sprinklr Inc (NYSE:CXM) maintained its Market Outperform rating and $17.00 price target in a research note from Citizens on Thursday. The target represents a 127% upside from the current price of $7.50, with InvestingPro data showing the stock appears undervalued based on its Fair Value assessment.

Citizens highlighted Sprinklr ’s AI-native unified platform and new Agentic AI and Copilot offerings as well-positioned to target segments of a $60 billion total addressable market.

The research firm expressed confidence in CEO Read’s three-phase turnaround plan, noting the company is currently in the transition phase making targeted investments to position for a growth inflection in fiscal year 2027, with revenue impact expected in fiscal 2028. This confidence appears warranted as InvestingPro data shows Sprinklr is already profitable with $0.45 diluted EPS over the last twelve months.

Citizens also cited positive sentiment toward the leadership of Mr. Read and incoming CFO Anthony Coletta, who previously spent 18 years at SAP (NYSE:SAP). Management’s confidence is evident in their aggressive share buyback program, one of several InvestingPro Tips highlighting the company’s solid financial position, including holding more cash than debt on its balance sheet.

The firm additionally identified Sprinklr as "an attractive acquisition target for a larger vendor," contributing to its positive outlook on the customer experience management software company. Investors looking for deeper insights can access Sprinklr’s comprehensive Pro Research Report, available among 1,400+ top stocks analyzed on InvestingPro, with the next earnings report due December 3.

In other recent news, Sprinklr reported its second-quarter earnings, revealing revenue of $212 million, an 8% increase compared to the previous year. This result surpassed both company guidance and analyst consensus estimates. Subscription revenue saw a 6% year-over-year growth, while professional services revenue increased by 22%. Additionally, Sprinklr raised its full-year guidance, indicating positive expectations for future performance. In leadership changes, the company announced the departure of Chief Revenue Officer Scott Millard, with no immediate successor named. Sprinklr also appointed Karthik Suri as Chief Product and Corporate Strategy Officer, who will oversee product vision and corporate strategy. The company unveiled new AI capabilities, including Sprinklr Copilot and enhanced Customer Feedback Management features, aimed at improving customer experience. Meanwhile, DA Davidson reiterated its Neutral rating for Sprinklr, citing the company’s ongoing turnaround strategy and efforts to boost revenue growth.

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