Cantor Fitzgerald analyst Brett Knoblauch downgraded Sprinklr Inc (NYSE: CXM) from Overweight to Neutral with a price target of $10.00 (from $16.00).

The analyst comments: "CXM reported a solid set of F1Q25 (ended January) results, but its guidance for the remainder of FY25 and commentary on the call suggest to us that demand is only deteriorating. Sprinklr has always been a premium-priced product, but reported revenue suggests customers are now pushing back on that, which we believe puts CXM in a tough position to then take control of the pricing narrative. It is hoping its AI products will be able to offset seat count churn; but thus far, that has not materialized. (Management said its due to their own execution issues.) Sprinklr is now expecting growth of 3% in the back half of the year, with growth continuing to decelerate into FY26. Furthermore, management withdrew their FY27 subscription target of $1bn and announced Trac Pham as co-CEO, which is a rarity in software (maybe indirectly hinting at succession planning?). With management stating that they are only one quarter into a six-quarter-long transition, we struggle to find a near-term catalyst that would warrant owning shares."

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Shares of Sprinklr Inc closed at $10.84 yesterday.