After Monness and RBC Capital gave Splunk Inc (NASDAQ: SPLK) a Buy rating last month, the company received another Buy, this time from Rosenblatt Securities. Analyst Yun Kim initiated coverage with a Buy rating on Splunk Inc today and set a price target of $150. The company’s shares closed last Monday at $109.49.
Kim wrote:
“We initiate coverage of SPLK with a Buy rating and $150 PT. In our view, SPLK is emerging as a de facto standard in the infrastructure and security management platform market, which positions the company well for the next stage of growth. As the infrastructure and security software market becomes increasingly data-driven, we see accelerated adoption of SPLK’s data-driven platform within large organizations to better manage and secure increasingly complex hybrid IT environments with disparate technologies. We expect its large deal activity to show faster growth, as more organizations adopt SPLK as their enterprise standard. With the current investor sentiment more focused on SPLK’s near- term cash flow generation, we believe this provides an opportunity for investors with a longer-term investment horizon to add a position on the next de facto enterprise standard in technology.”
According to TipRanks.com, Kim is a 5-star analyst with an average return of 18.8% and a 68.8% success rate. Kim covers the Technology sector, focusing on stocks such as Manhattan Associates, Mimecast Ltd, and Alteryx Inc.
Splunk Inc has an analyst consensus of Strong Buy, with a price target consensus of $153.78, representing a 37.6% upside. In a report issued on September 5, Maxim Group also maintained a Buy rating on the stock with a $148 price target.
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Based on Splunk Inc’s latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $101 million. In comparison, last year the company had a GAAP net loss of $103 million.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SPLK in relation to earlier this year.
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Splunk, Inc. engages in the development and marketing of software solutions. Its products include Splunk cloud, Splunk light, and Splunk enterprise. It also offers solutions for information technology operations, security, internet-of-things, application analytics, business analytics, and industries.
