SPT - Despite lofty tech valuations Baird says sweet-spot fresh pick has 39% upside

Market volatility has a number of investors worried about tech investing, and software-as-a-service multiples in particular, Baird notes. But it's giving Fresh Pick status to a company helping others manage their social media presence along with PR, marketing, strategy and other areas. Sprout Social (SPT) is headed for above-average growth (by which it means 30%-plus) in coming years thanks in part to recent billings strength, annual contract value growth and ARR acceleration as social benefits from some strong tailwinds ahead. The company's "tone on the road" has been positive this quarter, suggesting a healthy follow-through to a strong Q4, the firm's Rob Oliver writes. And marketing department checks are pointing to the rising importance of social media, as well as Sprout's best-in-class offerings. "The two foundational components of our bullish thesis on Sprout have been (1) the rise of 'social commerce' which we expect to drive increased spend for solutions

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Despite lofty tech valuations, Baird says sweet-spot fresh pick has 39% upside