Splunk (SPLK) PT Lowered to $205 at Goldman Sachs

Goldman Sachs analyst Kash Rangan lowered the price target on Splunk (NASDAQ: SPLK) to $205.00 (from $215.00) while maintaining a Buy rating following results.

The analyst commented, "With management guiding cloud to reach 50%+ of ARR mix in F23, and cloud mix of total software bookings inflecting to 68% in 3Q and guided to ~70% in 4Q vs 54% in 2Q, results validate our thesis that Splunk's Cloud business is ahead of multiple years of durable growth. Furthermore, results, coupled with strong F4Q22 and F23 guidance, give us conviction in our F24 estimates for ~$3bn of Cloud ARR and ~$700mn in FCF, roughly in-line with our prior model. We believe the next potential catalyst for the stock is the potential announcement of a new CEO, following which we expect long-term guidance."

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