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UBS Maintains a 'Neutral' on Splunk (SPLK); Supersized Q2, But Double-XL Multiple

August 31, 2012 10:53 AM EDT Send to a Friend
Get Alerts SPLK Hot Sheet
Price: $54.59 --0%

Rating Summary:
    20 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 21 | New: 41
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UBS maintains a 'Neutral' on Splunk (NASDAQ: SPLK) price target of $36.00 (from $33.00).

Analyst, Brent Thill, said, "We're fans of SPLK’s product and solid management team. However, its outsized multiple keeps us at bay. SPLK’s after hours trading price implies a 15.6x CY13E EV/S multiple, 75% above the average for the 10 highest multiple software stocks. Even if SPLK generated $200M this year (65% y/y growth) and 60% y/y growth next year, it would imply a 12.1x CY13E EV/S multiple, which is still 3.6% higher than the average for the 10 highest multiple software stocks."

FY13 EPS estimate raised from (0.10) to (0.05) and FY14 from (0.06) to (0.04)

For an analyst ratings summary and ratings history on Splunk click here. For more ratings news on Splunk click here.

Shares of Splunk closed at $30.50 yesterday.




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