Sprout Social Inc. (NASDAQ: SPT) has received a sustained 'Buy' rating from Needham analyst Scott Berg, maintaining a price target of $32.00 despite experiencing a 32% stock decline over the past six months. The company's recent financial results demonstrate resilience and potential for future growth.
In the first quarter of 2025, Sprout Social reported a 13% year-over-year revenue increase, reaching $109.3 million. The company also achieved a record non-GAAP operating margin of 11.5%, signaling operational efficiency and strategic market positioning.
The rating comes after a customer call with Caesars Entertainment, which highlighted Sprout Social's platform capabilities in managing complex brand portfolios. As of May 29, 2025, the company's stock traded at $21.58, representing a modest 0.65% increase.
Analysts' continued confidence suggests that Sprout Social's cloud-based social media management solutions remain valuable in an increasingly digital marketing landscape. The company's ability to grow revenue and maintain operational margins during challenging market conditions indicates strategic adaptability and potential long-term value for investors.
