Morgan Stanley Raises Sprinklr (CXM) PT to $10, Maintains Equal Weight Rating

On Thursday, Morgan Stanley analyst Elizabeth Porter raised the price target on Sprinklr Inc. (NYSE:CXM) to $10 from $8, while maintaining an Equal Weight rating on the shares. Porter noted that Sprinklr’s Q1 2025 report showed progress in the company’s transformation, with operational improvements and a stable near-term outlook.

A software engineer working on a monitor in a modern office.

Morgan Stanley is encouraged by the early stages of what is expected to be an approximately 18-month transformation and believes the shares appropriately reflect a turnaround story. The company’s total revenue reached $205.5 million in Q1, which was up 5% year-over-year, and subscription revenue at $184.1 million, which was up 4%. Professional services revenue in particular was $21.4 million.

The subscription and revenue-based net dollar expansion rate was 102%, and the company had 146 customers with $1 million or more in subscription revenue, which is up 6%. However, Sprinklr is facing longer sales cycles and increased scrutiny of enterprise spending due to macroeconomic uncertainty. The company is also contending with customer churn and downsell activity, which are impacting its net dollar expansion rate. The company anticipates a negative impact of $10 million on non-GAAP operating expenses due to foreign exchange rate volatility.

Sprinklr Inc. (NYSE:CXM) provides global enterprise cloud software products.

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Disclosure: None. This article is originally published at Insider Monkey.