Reassessing Sprinklr (CXM) Valuation After Its Recent Short-Term Share Price Rebound

Sprinklr (CXM) has quietly climbed about 3% over the past week and roughly 10% this month, even as its one year return remains negative. This invites a closer look at what investors might be recalibrating.

See our latest analysis for Sprinklr.

With the share price now at $8.03 and a 1 month share price return of just over 10%, investors seem to be re rating Sprinklr after a tougher stretch that left its 1 year total shareholder return still in negative territory. This hints that sentiment may be stabilising rather than surging.

If Sprinklr’s move has you rethinking your tech exposure, it could be worth scanning high growth tech and AI stocks for other software and AI names showing stronger momentum or more compelling growth profiles.

Given modest revenue growth, falling earnings, and a share price still trading at a discount to analyst targets, is Sprinklr an underappreciated CXM platform? Or is the market already pricing in the next leg of its AI driven expansion?

Most Popular Narrative: 27% Undervalued

With Sprinklr last closing at $8.03 versus a narrative fair value of $11, the prevailing view points to meaningful upside if expectations play out.

Focused efforts to improve operational efficiency with initiatives like Project Bear Hug to reduce churn among top enterprise customers are laying the groundwork for higher renewal rates and a stronger mix of multi year SaaS contracts, which should create greater revenue predictability, lift recurring revenue, and improve net margins.

Read the complete narrative.

Want to see what kind of growth, profitability, and valuation multiple it takes to justify that upside case? The core assumptions may surprise you.

Result: Fair Value of $11 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent customer churn or intensifying competition from larger CX and AI platforms could derail Sprinklr’s growth trajectory and challenge the undervaluation thesis.

Find out about the key risks to this Sprinklr narrative.

Build Your Own Sprinklr Narrative

If you are not fully convinced by this view or would rather dig into the numbers yourself, you can build a tailored narrative in minutes, Do it your way.

A great starting point for your Sprinklr research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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