Splunk (SPLK): Raising PT After An Exceptional Quarter - Drexel Hamilton

Drexel Hamilton analyst, Brian White, reiterated his Buy on shares of Splunk (NASDAQ: SPLK) and noted that he would be an aggressive buyer of Splunk on any weakness this morning. Splunk reported 2Q:FY17 revenue of $212.8 million (up 43% YoY) that beat Street consensus of $200.5 million and EPS of $0.05 exceeded Street consensus of 0.03. Splunk's 2Q:FY17 outlook called for sales of $198-200 million.

The analyst stated "The fundamental trends at Splunk remain very strong and the company is successfully transitioning its business to the cloud. Splunk Cloud experienced a doubling in orders from a year ago and is now operating at over a $100 million annual bookings run rate. Ultimately, we believe this will result in higher levels of recurring revenue and a higher multiple."

The price target increases to $90 from $85.

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 $65.10 yesterday.

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