Wedbush Securities Expects Sustained Momentum with Minimal Competition for Splunk

In a report published Friday, Wedbush Securities analyst Steve Koenig reiterated an Outperform rating and $78.00 price target on Splunk SPLK. In the report, Wedbush Securities noted, "We remain bullish on SPLK shares. We think the company can sustain a strong growth dynamic as enterprises adopt its innovative technology for large IT software markets (security, IT operations, and applications performance management) and emerging uses in Internet of Things (IoT). Also, traction with new products, partnerships, solutions-focused marketing, and international growth should provide incremental growth opportunities. SPLK's EV/ forward revenue multiple has remained fairly stable, in the 10x – 15x range since last May. Although we were cautious in the ‘very near-term' following SPLK's 3Q earnings report (due to 60% appreciation from August lows), we think SPLK shares have had time to digest these gains and could be ready to push higher." Splunk closed on Thursday at $61.93.