Street View: Splunk in demand on profitability potential

Splunk

24/08/2023 16:35

(Updates)
    ** Brokerages raise price target on Splunk  SPLK.O  after it
forecast Q3 revenue above market estimates on Wednesday, banking
on upbeat spending by companies that are increasingly adopting
artificial intelligence 
    ** Shares of the data analytics software maker up 12.5% at
$112.47 
        ** Expects Q3 revenue between $1.02 bln and $1.035 bln,
compared with analysts' estimate of $981.34 mln - Refinitiv 
  
    ** At least 19 brokerages raise price target after Q2
results
    ** Median PT from 42 brokerages is $126 - Refinitiv 
    
    STRONG DEMAND DRIVES UPBEAT FORECAST
  
        ** Wells Fargo Securities Research (PT: $135 from $125;
rating: "overweight") says, "Splunk reported solid 2Q24 results
and beat the high end of guidance, driven by strong 
  
    term demand"
  
        ** Barclays (PT: $134 from $130; rating: "overweight")
says, "The stronger top-line results, combined with strong
execution on cost rationalization initiatives, is causing faster
operating and FCF margin expansion that is starting to look more
in-line with our bullish take on the company’s profitability
potential"
  
        ** J.P.Morgan (PT: $120 from $100; rating: "neutral")
says, "The results underscore the company’s solid execution on
navigating what continues to be an uncertain macro environment"
  
       ** BofA Global Research (PT: $150 from $130; rating:
"buy") says, "Splunk is in the middle innings with productivity
efforts, with more upside to come"
  

 (Reporting by Pritam Biswas in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))