Sprout Social Turnaround Could Take Even Longer Than Expected, Says Bearish Analyst
Portfolio Pulse from Priya Nigam
Sprout Social's stock (NASDAQ:SPT) dropped after KeyBanc Capital Markets downgraded it from Sector Weight to Underweight, citing weaker-than-expected bookings and performance in 2024. Analyst Jackson Ader expressed concerns over the company's current bookings and remaining performance obligations, suggesting a longer turnaround time than anticipated.
August 22, 2024 | 2:43 pm
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Sprout Social's stock was downgraded by KeyBanc Capital Markets from Sector Weight to Underweight due to weaker-than-expected bookings and performance in 2024. The analyst expressed concerns over the company's current bookings and remaining performance obligations, suggesting a longer turnaround time than anticipated.
The downgrade from Sector Weight to Underweight by KeyBanc Capital Markets is a significant negative signal for investors, indicating a lack of confidence in Sprout Social's short-term performance. The concerns over bookings and remaining performance obligations suggest potential financial struggles, leading to a 4.94% drop in share price.
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