Wedbush Reiterates Outperform On Splunk Following “SplunkLive” Marketing Event


In a research report published August 14, Wedbush analyst Steven Koenig reiterated an Outperform rating on Splunk Inc. (SPLK), with a $67 price target. The report follows the company’s “SplunkLive” marketing event, which took place in San Francisco yesterday with 1,200 customers, prospects, and partners.

Koenig noted, “The event highlighted Splunk’s value through live demonstrations, use cases, and customer success stories. CEO Godfrey Sullivan kicked off the general session by describing how SPLK’s software helps to turn machine-generated data into useful insights for improving service performance, deepening business and customer understanding, mitigating cybersecurity risks, preventing fraud, and reducing costs. SPLK’s #1 R&D priority is being able to analyze any type of data collected from any device. SPLK markets itself as essentially the search tool for machine data, or “Google for IT” that is used to collect and analyze all unstructured and semi-structured data created from machines and devices. Mr. Sullivan discussed the growing opportunity from Big Data, proliferation of connected devices, and the Internet of Things (IoT). He characterized SPLK as being on “mile six” of its 26-mile marathon market opportunity.”

The analyst added, “We expect improving visibility will enable management to raise full-year guidance more aggressively, just as we saw in FY14 as the year progressed. SPLK is off to a good start for FY15 sales hiring, having accelerated its quota-carrier growth from 4Q14 (+35%) to 1Q15 (+40%). Combined with expected sales productivity improvements from tenure increases and the addition of specialized market resources, we think this quota carrier increase may support revenue growth as much as 10 points higher than the consensus growth rate of 30% in 2H15.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Koenig has a total average return of 5.5% and a 56.5% success rate. Koenig has a -14.9% average return when recommending SPLK, and is ranked #1220 out of 3242 analysts.

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