Sprout Social downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Clarke Jeffries downgraded Sprout Social to Neutral from Overweight with a price target of $40, down from $66. The company’s Q1 “was not the snapback” bulls had hoped for, but instead a continuation of “concerning” annual recurring revenue trends with less obvious cause given the “zeroing” out of the low-end by the end of last year, the analyst tells investors in a research note. The firm says it is hard to imagine a near-term revival in investor sentiment with ARR and total customer metrics going away as well as a back-end loaded year ahead.