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Sprout Social Inc . (NASDAQ:SPT), a leading provider of social media management tools, saw its stock price touch a 52-week low of $22.95, reflecting a period of significant pressure for the tech company. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, while the company maintains impressive gross profit margins of 77.5%. This latest price level, reached during a tumultuous time for tech stocks, underscores the challenges faced by the sector, particularly for growth-oriented companies. Over the past year, Sprout Social’s stock has experienced a sharp decline, with the 1-year change data showing a decrease of -61.18%. Despite this downturn, the company achieved 21.7% revenue growth, and seven analysts have revised their earnings estimates upward for the upcoming period. For deeper insights into SPT’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Sprout Social Inc. has reported its fourth-quarter results, revealing a slowdown in revenue growth, which has influenced several analysts to adjust their price targets and ratings. Scotiabank (TSX:BNS) cut its price target for Sprout Social to $25, citing a slowdown in cRPO bookings growth and lower-than-expected fiscal year 2025 revenue guidance. Stifel also reduced its price target to $34 but maintained a Buy rating, highlighting the company’s solid growth in billings and non-GAAP operating margins. Cantor Fitzgerald lowered its price target to $38, maintaining an Overweight rating while adjusting its financial outlook for the company. KeyBanc kept its Underweight rating with a $23 price target, noting a reset in revenue growth expectations for 2025. Goldman Sachs revised its price target to $29, maintaining a Neutral rating due to slowed revenue growth and challenges in shifting focus to larger markets. Despite these adjustments, analysts have noted improvements in Sprout Social’s enterprise segment and its strategic investments in product development and market strategies. The company has also achieved significant milestones, such as closing its largest new business deal with a Fortune 500 financial services company.
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