Is Splunk's Stock Surge Backed By FY Forecast? 4 Analysts Examine FQ2 Results
Portfolio Pulse from Priya Nigam
Shares of Splunk Inc (NASDAQ:SPLK) surged after the company reported better than expected fiscal second-quarter results. Analysts from Mizuho Securities, Wedbush, BMO Capital Markets, and Oppenheimer provided their takeaways from the earnings release. While all analysts maintained their ratings, they raised their price targets citing strong annual recurring revenue (ARR) growth, improved operating margins, and raised F2H margin and FCF guidance. However, cloud revenue/ARR was below expectations.
August 24, 2023 | 5:06 pm
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Splunk's stock surged after better than expected Q2 results. Analysts raised their price targets citing strong ARR growth, improved operating margins, and raised F2H margin and FCF guidance. However, cloud revenue/ARR was below expectations.
The positive earnings report and raised price targets by analysts indicate a positive short-term impact on Splunk's stock. However, the lower than expected cloud revenue/ARR could be a concern for investors.
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