Morgan Stanley analyst Elizabeth Porter has maintained their neutral stance on CXM stock, giving a Hold rating on March 22.
Elizabeth Porter’s rating is based on a careful analysis of Sprinklr’s recent financial performance and future outlook. The company’s Q4 results showed a stronger performance than anticipated, with significant year-over-year growth in subscription revenue, billings, and bookings based on Remaining Performance Obligations (RPO) / Contracted Remaining Performance Obligations (CRPO). Despite this, there is uncertainty around the FY25 guidance, which has remained unchanged and reflects only a 10% growth in revenue. This raises questions about whether the guidance is overly conservative or if a larger slowdown is on the horizon.
The hold rating also considers the impact of strategic changes within the company’s go-to-market approach and the potential for continued pressure from both self-inflicted issues and broader macroeconomic factors. Though new leadership and operational changes are expected to bring positive results, it may take several quarters for these adjustments to fully take effect. Moreover, there are concerns about execution in the core business and the need for an acceleration in growth to meet the ambitious revenue target for FY27. In light of these balanced views and the need for more evidence of a growth reacceleration, Porter maintains a Hold rating on Sprinklr’s stock.
In another report released on March 22, Wells Fargo also maintained a Hold rating on the stock with a $12.00 price target.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CXM in relation to earlier this year.
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Sprinklr (CXM) Company Description:
Sprinklr Inc is engaged in providing enterprise software that enables every customer-facing function across the front office, from Customer Care to Marketing, to collaborate across internal silos, communicate across digital channels. Its products include Modern Marketing and Advertising, Morden Research, Modern Care, Core Platform, and Developer portal among others.
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