On Wednesday, Sprout Social Inc . (NASDAQ:SPT) received an Overweight rating from KeyBanc, accompanied by a price target set at $83.00. The company, recognized as a significant player in the Social Media Management (SMM) sector, offers a specialized platform for businesses to manage their social media presence and engage with customer feedback across various channels.
Sprout Social has been acknowledged for its strong position in the mid-market and upper small to medium-sized business (SMB) segments, with intentions to expand its reach to higher Average Revenue Per User (ARPU) customers. The platform's user-friendly interface and the ability to execute quick sales cycles, typically under a month, were highlighted as key factors in its success. These features enable clients to streamline their social media marketing efforts and seamlessly integrate them with Salesforce (NYSE:CRM).
In late 2022, Sprout Social implemented a price increase and has since moved past a period of churn among SMB customers. This change has paved the way for the company to capitalize on a more committed customer base with the potential for higher ARPU.
KeyBanc sees multiple opportunities for Sprout Social's growth, including its strategic partnership with Salesforce, the acquisition of Tagger Media, and the prospects of expanding into the upmarket customer base. The firm's assessment suggests a positive outlook for Sprout Social's future performance in the market.
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