On Thursday, KeyBanc Capital Markets maintained its Overweight rating on Sprinklr Inc (NYSE:CXM) with a steady price target of $12.00. The firm recognized the company's positive performance following a stronger-than-expected quarter and encouraging guidance. Although year-on-year growth is anticipated to slow in the fourth quarter of 2025, sequential growth suggests that the company may be reaching the lowest point in its current cycle.
The recently appointed CEO, Rory Read, has introduced a series of strategic changes aimed at refining the company's operations. These include simplifying pricing and packaging, sharpening the focus of sales representatives' coverage areas, revising incentives to align with desired outcomes, and restructuring the high-level coverage model into pods to enhance customer relationships.
KeyBanc highlighted that these changes are designed to be implemented without incurring additional costs, emphasizing efficiency and effectiveness. The analyst noted that while these changes are essential for the company's progress, they are not without their challenges. The implementation and subsequent adjustment to these changes are expected to span a six to twelve-month period, during which the company's execution could potentially be at risk.
Despite these concerns, the firm's outlook remains positive, acknowledging the stability in Sprinklr's business performance. The company is navigating a period of transformation with a clear focus on operational efficiency and customer engagement, which is seen as a positive development for its future prospects.
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