Sprinklr (CXM): Reassessing Valuation After a Recent Share Price Bounce

Sprinklr (CXM) has quietly drifted higher this week, and that move is catching some investors off guard. The stock is up about 10% over the past week and roughly 5% this month.

See our latest analysis for Sprinklr.

Zooming out, Sprinklr’s recent upswing sits against a softer backdrop, with a negative year to date share price return and slightly negative one year total shareholder return. This suggests momentum is improving but not yet firmly established at the current 7.90 dollar share price.

If Sprinklr’s move has you scanning for other potential winners, this could be a good time to explore high growth tech and AI names via high growth tech and AI stocks.

With shares still trading at roughly a 30 percent discount to analyst targets despite modest revenue growth and weak earnings momentum, is the market overlooking Sprinklr’s potential or already correctly pricing in its next leg of growth?

Most Popular Narrative Narrative: 28.2% Undervalued

With the most followed narrative placing Sprinklr’s fair value around 11 dollars versus a 7.90 dollar close, the story leans firmly toward upside potential.

Ongoing international expansion, deepening engagement with large enterprise clients, and targeted M&A or talent acquisition in AI and social capabilities position Sprinklr to capture a larger share of the accelerating global shift to integrated customer experience management. This supports durable long term revenue growth and offers potential margin expansion through scale.

Read the complete narrative.

Curious how modest revenue expansion, shrinking margins, and a surprisingly rich future earnings multiple can still argue for upside? The narrative stitches those pieces together in unexpected ways.

Result: Fair Value of $11 (UNDERVALUED)

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

However, ongoing customer churn and rising AI infrastructure costs could undermine margin expansion and challenge the optimistic view on Sprinklr’s long term earnings power.

Find out about the key risks to this Sprinklr narrative.

Build Your Own Sprinklr Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized take in just a few minutes with 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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