Morgan Stanley Adopts Constructive 2026 Outlook for Sprout Social (SPT) as AI Risks Ease

Sprout Social Inc. (NASDAQ:SPT) is 1 of the best tiny headdress tech stocks to put successful now. On January 15, Morgan Stanley lowered its terms people for Sprout Social to $12 from $14, portion maintaining an Equal Weight rating. In a assemblage outlook, the steadfast noted that portion exertion SaaS underperformed successful 2025, determination is increasing grounds that AI-related risks whitethorn beryllium little terrible than antecedently expected, supporting a much constructive presumption for 2026. However, due to the fact that broad-based affirmative spending revisions person yet to materialize, the steadfast remains selectively opportunistic regarding the group.

Additionally, connected January 12, Barclays expert Raimo Lenschow importantly reduced the terms people for Sprout Social to $13 from $26, portion maintaining an Overweight standing connected the shares. This accommodation was portion of a broader 2026 outlook for the bundle sector, wherever Barclays remains mostly optimistic.

The steadfast noted that contempt the terms people cut, the setup for bundle successful 2026 is favorable owed to unchangeable IT spending, dependable macroeconomic conditions, and historically debased banal valuations successful a assemblage that is presently retired of favour with investors.

Sprout Social Inc. (NASDAQ:SPT) designs, develops, and operates a web-based societal media absorption level successful the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

While we admit the imaginable of SPT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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