Cantor analyst Brian White came out today with a research report on Splunk Inc (NASDAQ:SPLK), reiterating a Buy rating on the stock and increasing the price target to $90 (from $85), which represents a potential upside of 29% from where the stock is currently trading. This report comes after the company reported its fourth-quarter results that sailed through the analyst estimates.
White noted, “With another standout quarter behind Splunk, a significant uptick in large-sized deals, a broader portfolio, opportunities overseas, strong momentum in security and the tailwind surrounding the Big Data trend, we believe Splunk is well positioned for strong growth in FY:16. As such, we reiterate our BUY rating and are raising our 12-month price target to $90.00 (from $85.00) on our newly introduced CY:16 revenue estimate.”
“Looking ahead to 1Q:FY16 Splunk expects sales of $116-118 million (consensus is at $115.5 million). For FY:16, Splunk increased its sales outlook to $600 million from $575.0 million (consensus is at $580.6 million). For 1Q:FY16, we are maintaining our revenue forecast at $121 million and narrowing our pro forma EPS estimate to negative $0.04 from negative $0.05 (consensus is at negative $0.04). For FY:16, we are increasing our revenue estimate to $600.9 million from $575.3 million and maintaining our pro forma EPS projection at $0.06.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a total average return of 21.2% and a 75.9% success rate. White has a 22.9% average return when recommending SPLK, and is ranked #12 out of 3483 analysts.