|Ask||62.92 x 1000|
|Day's Range||58.07 - 59.08|
|52 Week Range||50.60 - 69.23|
|PE Ratio (TTM)||-22.50|
|Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of Big Data and analytics software maker Splunk (SPLK) are up $1.48, or 2.6%, at $58.61, after Guggenheim’s Nate Cunningham this morning raised his rating on the shares to Buy from Neutral, as he thinks the company can steal business from ArcSight, a competitor that Hewlett Packard Enterprise (HPE) is divesting to Micro Focus International PLC (MCROL). Cunningham, who raises his price target a buck to $70, writes that he was concerned last October, when he downgraded the stock, about the “model transition” of Splunk, as it moved further into cloud computing. Now, however, he sees a “jump ball" worth $300 million in the form of ArcSight, whose operations he expects to be suddenly underfunded and vulnerable as ArcSight takes over. Since going public, Splunk has rapidly grown into one of the largest providers of security information and event management (SIEM) software, and today IBM (IBM, NEUTRAL, $153.79) is the only vendor with more revenue in this category.
Splunk saw its shares slide on Thursday after it caught a downgrade on the basis that it may be facing transition challenges.
Shares of data analysis software maker Splunk (SPLK) are down 94 cents, or 1.6%, at $56.67, after Wedbush’s Steve Koenig this morning cut his rating on the stock to Neutral from Outperform, writing that the company probably won’t beat expectations as much as in past because of rising competition. Koenig writes that he attended Splunk’s one-day user meet-up, SplunkLive!, yesterday in Orange County (Anaheim), California. What he observed made him think that alternatives are becoming more and more formidable. His overall view, writes Koenig, is that, "We think the cloud transition is creating complexity from a mixed go-to-market model,” writes Koenig, "meaningful competition is starting to emerge on several fronts, and fundamentals are likely to remain somewhat messy even if the company succeeds in fixing European execution issues." Koenig notes the alternatives from the open-source world as well as commercial competition: We think competitive threats have been fairly muted in the past, but now our checks are pointing to incremental competition for SPLK on several fronts.