UPDATE: Oppenheimer Initiates Coverage on Splunk with Outperform Rating, $80 PT on Multiple Positive Factors

In a report published Wednesday, Oppenheimer analyst Shaul Eyal initiated coverage on

with an Outperform rating and $80.00 price target. In the report, Oppenheimer noted, “We are initiating coverage of SPLUNK (SPLK), a rapidly growing big data player in a large potential market, with an Outperform rating and an $80 PT. SPLK provides a software platform that enables the development of real time operational intelligence by collecting/analyzing machine data. While we acknowledge SPLK's lofty valuation (15.8x EV/FY15E rev.), our positive thesis is supported by SPLK's: 1) limited competition; 2) evolution into an end-to-end platform provider; 3) ability to disrupt target markets even in these early chapters of its growth story; and 4) ability to sustain annual revenue growth higher than 30% over the next few years. Our PT of $80 is based on a DCF as well as an FY15E EV/rev. of 17.3x.” Splunk closed on Tuesday at $71.69.