Buy Rating Affirmed Amid Leadership Transition at Sprout Social

Needham analyst Scott Berg has maintained their bullish stance on SPT stock, giving a Buy rating today.

Scott Berg’s rating is based on the strategic executive changes within Sprout Social and the anticipated smooth transition of leadership roles. The announcement of Justyn Howard stepping down as CEO to become the Executive Chair, with Ryan Barretto taking over the CEO position, has been carefully considered. Barretto’s extensive familiarity with Sprout Social’s operations and his successful history in sales leadership, particularly his time at Salesforce, instill confidence in his ability to guide the company forward.

Berg believes that Barretto’s dual role retention as President and CEO will likely address potential investor concerns about the transition and maintain continuity within the company’s strategic direction. This leadership change is seen as a positive move for Sprout Social, signaling a well-planned succession that could bolster the company’s future growth and performance. Hence, the Buy rating reflects the expectation of a seamless transition and continued success under the new leadership structure.

In another report released today, Barclays also maintained a Buy rating on the stock with a $72.00 price target.

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Sprout Social (SPT) Company Description:

Sprout Social, Inc. provides online social media management tools for businesses. It offers communication tools, contact management, lead generation, and analytics services. The company offers solutions for enterprises, agencies, small businesses, customer service, social media marketing, and employee advocacy sectors. Sprout Social was founded by Justyn Howard, Aaron Rankin and Gilbert Lara in 2010 and is headquartered in Chicago, IL.