Morgan Stanley Adopts Constructive 2026 Outlook for Sprout Social (SPT) as AI Risks Ease

Group 1 - Sprout Social Inc. (NASDAQ:SPT) is considered one of the best small-cap tech stocks to invest in currently, despite recent price target reductions by analysts [1][2] - Morgan Stanley lowered its price target for Sprout Social to $12 from $14 while maintaining an Equal Weight rating, indicating a cautious but stable outlook for the company [1] - Barclays analyst Raimo Lenschow significantly reduced the price target for Sprout Social to $13 from $26, yet maintained an Overweight rating, reflecting a generally optimistic view for the software sector [2] Group 2 - The software sector's outlook for 2026 is favorable due to stable IT spending, steady macroeconomic conditions, and historically low stock valuations, despite current investor aversion [3] - There is growing evidence that AI-related risks may be less severe than previously expected, which supports a more constructive view for 2026 [1][4] - Sprout Social operates a web-based social media management platform across various global regions, including the Americas, Europe, the Middle East, Africa, and the Asia Pacific [4]