Analysts Continue To See Sharp Upside In Sprinklr Post Q3 Beat
Analysts cut price targets on Sprinklr Inc (NYSE: CXM) despite the Q3 beat and positive Q4 outlook.
Oppenheimer analyst Brian Schwartz lowered the price target to $23 from $29 (70% upside) and kept an Outperform, citing recent SaaS group multiples compression.
The company executed well in its Q3 with a "beat-and-raise," accelerating growth metrics across the leading indicators, 32% short-term billings growth, and promising considerable deals momentum offset by some deceleration in the Q4 guidance, Schwartz tells.
However, he believes the guidance could prove conservative given the strong Q3 bookings.
The good sales execution and accelerating growth seen in the Q3 results support the firm's bullish view of Sprinklr.
Schwartz believes the company stands well-positioned to capitalize on a large and fast-growing experience management market, but valuation is not fully reflecting the growth potential.
Barclays analyst Raimo Lenschow lowered the price target to $23 from $27 and kept an Overweight.
Post the earnings report, the Sprinklr story, which has fallen out of favor lately, is ready for investors to take another look at, Lenschow tells.
He feels the stock is "especially compelling" at the current multiple of five-times estimated 2023 sales.
JPMorgan analyst Mark Murphy upgraded to Overweight from Neutral with a price target of $20, down from $22 (48% upside).
The 48% pullback in the shares "creates a dislocation," Murphy says.
With over 90% recurring-in-nature revenue, Sprinklr's financial model provides it with a high degree of revenue visibility, says the analyst.
Murphy adds that although the company's growth has slowed during the pandemic into the high-teens, its growth profile should improve over the next couple of years going into the low to mid-twenties, on a subscription revenue basis.
Wells Fargo analyst Michael Turrin maintained Sprinklr with an Equal-Weight and lowered the price target to $15 from $20, suggesting an 11% upside.
Price Action: CXM shares traded higher by 7.70% at $14.55 in the premarket session on the last check Friday.
Latest Ratings for CXM
Dec 2021 | Barclays | Maintains | Overweight | |
Dec 2021 | Wells Fargo | Maintains | Equal-Weight | |
Dec 2021 | Oppenheimer | Maintains | Outperform |
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