JMP Securities reiterates Market Outperform rating on Sprinklr stock

JMP Securities reiterated its Market Outperform rating on Sprinklr (CXM) with a $17.00 price target, identifying it as an attractive acquisition candidate amidst anticipated SaaS M&A activity throughout 2025. The firm also highlighted other potential acquisition targets including Blackline (BL), C3.ai (AI), Domo (DOMO), DocuSign (DOCU), Teradata (TDC), and Vertex (VERX), maintaining varying ratings. Separately, Domo (DOMO) announced enhanced cloud integration capabilities with Snowflake and a new K-12 education partnership, leading to positive analyst revisions from TD Cowen (raising PT to $13) and Cantor Fitzgerald (increasing PT to $17).

Analysis

The Software-as-a-Service (SaaS) sector is exhibiting strong potential for consolidation, as highlighted by JMP Securities' reiterated Market Outperform rating and $17.00 price target on Sprinklr (CXM), which it identifies as an attractive acquisition candidate. The firm has extended this M&A thesis to a broader list of companies including Blackline (BL), C3.ai (AI), Domo (DOMO), DocuSign (DOCU), and Vertex (VERX), all of which carry Market Outperform ratings with price targets of $80, $30, $20, $124, and $50 respectively. Teradata (TDC) is also on the list but with a more cautious Market Perform rating. Separately, Domo is demonstrating significant fundamental momentum independent of M&A speculation. The company has enhanced its strategic partnership with Snowflake, launching new applications on the Snowflake Marketplace and enabling direct cloud data transformations with its Magic ETL Pushdown feature. This operational progress, coupled with a new partnership with Burbio to enter the K-12 education vertical, has prompted positive analyst revisions. TD Cowen raised its price target on Domo to $13, and Cantor Fitzgerald increased its target to $17, citing favorable benchmarks and strong momentum following its first-quarter results.

Key Decisions for Investors

• Investors should assess the basket of SaaS companies identified by JMP Securities (CXM, BL, AI, DOMO, DOCU, VERX) as potential beneficiaries of increased M&A activity, which could provide a valuation floor and catalyst for appreciation.
• Domo (DOMO) warrants particular attention due to concrete fundamental improvements, including its deepening Snowflake integration and analyst price target upgrades, suggesting its investment case is supported by both strategic M&A potential and improving operational performance.
• It is crucial to differentiate between the broad M&A theme and individual company fundamentals, as exemplified by Teradata (TDC) having a less favorable 'Market Perform' rating despite being on the acquisition list, indicating a need for deeper due diligence on its specific outlook.
• Consider the varying price targets as a guide to perceived upside, such as DocuSign's $124 target, which suggests significant potential compared to its peers if JMP's thesis materializes.