Cantor Fitzgerald Initiates Coverage of Sprout Social (SPT) With Neutral Rating

On June 3, Cantor Fitzgerald initiated its coverage of Sprout Social, Inc. (NASDAQ:SPT), assigning a Neutral rating to the stock with a price target of $24.

Brett Knoblauch from Cantor Fitzgerald noted that the company is gaining market share in the Social Media Management sector. During Q1 2025, the company made notable progress, achieving a 22% growth year-over-year in the $50,000 Annual Recurring Revenue (ARR) cohort. This shows Sprout Social’s growing enterprise customer acquisition. Knoblauch pointed out that Sprout Social’s acquisition of Tagger Influencer Marketing management will provide various opportunities to sustain low-teens growth over the coming years.

A marketing manager in a boardroom making decisions about the company’s social media management platform.

The analyst mentioned that Sprout Social is enhancing its capabilities for integration with networks and commerce features, however, social networks are still assessing their strategies for platform openness to third-party services. The company made strategic developments during Q1, including collaborations with renowned brands such as Palo Alto, NASCAR, and Interscope Records, reflecting the growing appeal among large enterprises. Knoblauch also mentioned Sprout Social’s growing margins and FCF conversion to be key for its growth in the future. The company reported record non-GAAP operating margin and FCF during Q1, achieving 11.5% and $19.5 million year-over-year, respectively.

Sprout Social, Inc. (NASDAQ:SPT) is engaged in designing, developing, and operating a Web-based social media management tool. The company allows enterprises to manage and measure their online presence through its tool.

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