Splunk (SPLK) PT Lowered to $181 at Needham & Company

December 2, 2021 7:27 AM EST
Get Alerts SPLK Hot Sheet
Price: $116.25 --0%

Rating Summary:
    39 Buy, 18 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 10 | New: 36
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Needham & Company analyst Jack Andrews lowered the price target on Splunk (NASDAQ: SPLK) to $181.00 (from $203.00) while maintaining a Buy rating.

The analyst commented, "We are encouraged by SPLK’s 3QFY22 results for three reasons: 1) investors had an opportunity to learn more context around the CEO change which we believe should alleviate some fear and uncertainty; 2) SPLK’s cloud results continued to demonstrate strength, highlighted by an acceleration in cloud ARR (+75% YoY growth); 3) management unexpectedly provided directional guidance for FY23, which should ease concerns around fundamental momentum and visibility. With SPLK now through the majority of its model transition (i.e. management expects cloud to represent 70% of total mix in 4QFY22), we expect quarterly volatility will begin to dissipate, which also should be a positive for the shares. We continue to believe that the combination of ramping OCF and a growing ARR renewal base provides optimism for SPLK to be revalued as a cloud company."

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