UPDATE: KeyBanc Downgrades Splunk (SPLK) to Sector Weight on Compounding 2021 Transition Risks
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KeyBanc analyst Michael Turits downgraded Splunk (NASDAQ: SPLK) from Overweight to Sector Weight.
The analyst comments "We downgrade SPLK to Sector Weight following the announced resignation on Thursday of CTO Tim Tully. In our view, Tully's departure comes at a tough time during the transition this year of the cloud customer base to SCP. Plus, it compounds other risks, including: 1) the uncertain success of the acquired Observability Suite; 2) other recent management departures including the heads of sales and security; 3) ongoing pricing changes; and 4) increased competition in logs and security. While the success of SCP and Observability would be strong positive drivers, we now see the risk/reward more balanced with the CTO transition yet another variable added to the equation. We would wait for more visibility into these initiatives to look to again get constructive on SPLK."
Shares of Splunk closed at $148.38 yesterday.
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