Cantor Maintains Buy On Splunk Following Strong 3Q:FY15 Results; Raises PT To $85

In a research report published Friday, Cantor analyst Brian White maintained a Buy rating on Splunk (NASDAQ:SPLK) and slightly raised his price target to $85 (from $83), as the company reported strong 3Q:FY15 results, with revenue that handily beat Cator’s projections with customer additions that set a 3Q record, while the company offered a glimpse into its revenue outlook for FY:16.

White noted, “We expect the glow of Splunk’s strong performance to spill over into other high-growth names in our coverage universe, including Tableau and Workday. With Splunk delivering another big quarter and our belief that the stock has been unjustly held back this year (down 5% YTD, down 39% from the peak in February), we believe the stock has an opportunity to play catch up during the final weeks of the year.”

The analyst added, “We are raising our 12-month price target to $85.00 from $83.00, which is based on an enterprise-value-to-sales ratio of 16.5x our CY:15 revenue estimate.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a total average return of 20.3% and a 74.4% success rate. White has a 27.6% average return when recommending SPLK, and is ranked #12 out of 3393 analysts.


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