Sprout Social Started With Buy Rating at Berenberg Bank

Berenberg Bank resumed coverage on Sprout Social, Inc. (NASDAQ:SPT) with a Buy rating and $77 price target, noting the company’s platform has evolved to become the go-to social media management tool for not only SMEs but also larger enterprise customers.

The analysts believe recent investments and new partnerships, including an expanded integration with Salesforce, offer an opportunity to own an asset that will be able to win market share and sustain over 30% revenue growth while also consistently expanding margins for the next five years.

Revenue growth is expected to be supported mainly by larger land deals versus customer count going forward with an ARR/customer CAGR of 20% through 2027.