Sprinklr’s Transformation Progress: Operational Improvements Lead to Hold Rating Amid Stable Revenue Outlook

Morgan Stanley analyst Elizabeth Porter has maintained their neutral stance on CXM stock, giving a Hold rating yesterday.

Elizabeth Porter’s rating is based on Sprinklr’s initial achievements in its business transformation, specifically in operational improvements. The company’s recent quarterly results demonstrated success in Phase 1 of its transformation journey, with a notable improvement in operating margins due to a significant reduction in headcount. This operational progress has set a solid foundation for the next phase, which focuses on enhancing execution.
Despite these positive developments, the revenue outlook remains stable but not overly ambitious, with guidance aligning closely with market expectations. The cautious approach reflects potential risks associated with the ongoing restructuring. While the early signs of transformation are promising, the stock’s current valuation appears to adequately reflect these improvements, leading to a Hold rating as investors await further progress in the company’s strategic initiatives.

Porter covers the Technology sector, focusing on stocks such as Autodesk, Amplitude, and Freshworks. According to TipRanks, Porter has an average return of -4.3% and a 36.99% success rate on recommended stocks.