Splunk (SPLK) Sell-Off 'Unwarranted', Cantor Fitzgerald Says

Cantor Fitzgerald analyst Brian White said today's sell-off (-4.5%) in Splunk (NASDAQ: SPLK) on news of a new CTO departure is "unwarranted."

"Although Splunk announced a new Chief Technology Officer (CTO) this morning with the appointment of Snehal Antani, replacing the prior CTO (Todd Papaioannou), we view this as an upgrade for the company and thus a positive announcement," White said. "Mr. Antani was previously the CIO for different divisions within GE Capital and a Splunk customer. Given that Splunk is scheduled to report 1Q:FY16 (ended April) next week, a change in management ahead of the print may be viewed negatively by the market; however, we do not view this announcement as such. Finally, Splunk's 1Q:FY16 has historically been the weakest quarter of the year for the company due to seasonality and the only quarter of the year that averages a QoQ decline in sales over the past four years; however, the April quarter ended a few weeks ago, and we believe investors can now look forward to stronger trends as the year progresses."

The firm reiterated a Buy rating and price target of $90.00

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 $70.25 yesterday.

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