Oppenheimer Believes Splunk Inc (NASDAQ: SPLK) Still Has Room to Grow

By Austin Angelo

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 $67.09, close to its 52-week high of $69.23.

Eyal noted:

“For 1Q18 (Apr. ’17), SPLK posted revenue of $242M (+30% year/year), beating the consensus $234M forecast. Loss per share of $0.01 beat the consensus – $0.04E. During 1Q, SPLK signed nearly ~500 new enterprise customers, and its list of new and expansion customers includes a wide variety of public and private institutions. SPLK announced support for SaaS Contracts in AWS Marketplace to enable procurement and deployment of Splunk Cloud as well as fast time-to-value for customers leveraging Splunk solutions across Amazon Web Services (AWS) and hybrid environments. SPLK also announced Splunk DB Connect 3.0, which enables connections between Splunk and the structured data world of SQL and JDBC.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 12.7% and a 66.7% 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 Strong Buy and the average price target is $77.20, representing a 15.1% upside.

In a report issued on May 12, Jefferies also reiterated a Buy rating on the stock with a $81 price target.

The company has a one year high of $69.23 and a one year low of $50.60. Currently, Splunk Inc has an average volume of 1.15M.

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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.