Splunk Inc. Receives a Buy from Oppenheimer

By Jason Carr

Oppenheimer analyst Shaul Eyal reiterated a Buy rating on Splunk Inc. (NASDAQ: SPLK) today and set a price target of $80. The company’s shares closed yesterday at $57.38.

Eyal commented:

“For 3Q17 (Oct. ’16), Splunk posted revenue of $245M (+40% y/y), beating the consensus $230M. Non-GAAP EPS came in at $0.12 beating the consensus $0.08. During the quarter, SPLK signed nearly 500 new enterprise customers. We continue to believe that SPLK is in the early stages of its growth trajectory and should be able to maintain high revenue growth rates for several quarters to come. In addition, we think SPLK’s profitability ratios reflect the company’s tilt toward growth, and we expect improved profitability measures as the company matures and profitability assumes a greater role in the company’s strategic plan.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 10.1% and a 57.8% success rate. Eyal covers the Technology sector, focusing on stocks such as CSG Systems International, Nuance Communications, and IAC/InterActiveCorp.

Currently, the analyst consensus on Splunk Inc. is Moderate Buy and the average price target is $67.14, representing a 17.0% upside.

In a report issued on November 22, BMO Capital also reiterated a Buy rating on the stock with a $66 price target.

The company has a one year high of $65.75 and a one year low of $29.85. Currently, Splunk Inc. has an average volume of 1.52M.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SPLK in relation to earlier this year. Most recently, in April 2016, Guido Schroeder, the SVP, Products of SPLK bought 7,833 shares for a total of $70,497.

Splunk, Inc. engages in the development and provision of software solutions. It offers cloud services, enterprise security, application delivery, big data, business analytics, information technology operations, and log management through its machine data product. It analyzes machine data to deliver operational intelligence for security, IT and the business. The company was founded by Erik M. Swan, Michael J. Baum and Robin K. Das in October 2003 and is headquartered in San Francisco, CA.