Splunk's Success Story Sees No Endpoint, Analyst Highlights Customer Enthusiasm - SPLUNK INC COM (NASDAQ:SPLK)

Needham analyst Mike Cikos reiterated a Buy rating on the shares of Splunk Inc. SPLK, raising the price target to $125 from $120.
The analyst applauded Splunk's Q1 FY24 results, highlighting improving Operating Margins and Free Cash Flows.
Also Read: Why Splunk Shares Are Gaining Today
The analyst sees Splunk as an industry leader with solid products attacking a huge market opportunity.
While the company is not immune to the macro sluggishness in Cloud migrations, Mike views the headwinds to Cloud as temporary.
The analyst sees Splunk's investment in the portfolio across both On-Premise and Cloud as solid footholds in companies' Hybrid environments.
Splunk sees Q2 FY24 revenue of $880 million-$895 million (vs. consensus of $868.46 million), ARR of around $3.825 billion, and an adjusted operating margin of 10%-12%.
Splunk represents one of the few open-ended growth stories in the technology space since the more customers use the company's software, the more those customers want to use it, mentioned the analyst.
Price Action: SPLK shares are trading lower by 1.03% at $95.69 on the last check Thursday.