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Rosenblatt maintains Buy on Sprinklr, but awaits update on strategic direction under Read

EditorRachael Rajan
Published 12/02/2024, 10:10 PM
CXM
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On Monday, Rosenblatt Securities maintained a Buy rating on Sprinklr Inc (NYSE:CXM) with a steady price target of $10.00. The firm's stance comes despite acknowledging the company's recent operational challenges.

Last quarter, Sprinklr encountered difficulties ranging from sales execution issues to budgetary pressures on customers, which affected various modules such as Social, Insights, and Marketing. Additionally, delays in CCaaS deployments were noted, suggesting a potentially longer recovery period for the company.

The firm also highlighted the recent C-level management changes at Sprinklr, with a particular focus on the appointment of Rory Read as CEO in November 2024. These executive transitions are considered significant as the company navigates through its current challenges.

"We expect an update on the previously announced five-point plan and the company's strategic direction under Read's leadership, including actions taken to address these challenges," the analysts said.

In other recent news, Sprinklr Inc. reported an 11% year-over-year increase in total revenue, reaching $197.2 million in the second quarter of fiscal year 2025. However, operating margins and per-share earnings fell short of expectations. For the upcoming third quarter, Sprinklr anticipates total revenue between $196 million and $197 million, with subscription revenue estimated between $177.5 million and $178.5 million.

Meanwhile, Scotiabank (TSX:BNS) initiated coverage on Sprinklr with a "Sector Perform" rating and a price target of $7.70, reflecting the company's ongoing strategic shift and internal restructuring. Barclays (LON:BARC), on the other hand, downgraded Sprinklr's shares from Overweight to Underweight due to concerns about the company's position in the genAI and CaaS landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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