Splunk Likely To Significantly Improve Cash Flow After New CFO Appointment, Analyst Says

Rosenblatt analyst Blair Abernethy rated Splunk Inc SPLK shares at Buy with a price target of $130.
Splunk appointed Brian Roberts as CFO, effective immediately.
On September 26, Splunk disclosed that the former CFO Jason Child stepped down to take another position in early November. Softbank Group Corp SFTBY owned British chipmaker Arm Ltd appointed Splunk Inc's SPLK Jason Child as its new CFO.
Since then, Splunk has been operating with an Office of the CFO that includes the CEO and others.
Roberts was previously CFO of Ozone Networks, before that, CFO of Lyft, Inc LYFT, and held senior roles at Walmart Inc WMT and Evercore Inc EVR.
The analyst views the appointment of Roberts as an incremental positive for Splunk as it provides greater certainty and brings a fresh perspective to the executive team when Splunk completes its model transition.
The analyst expects Splunk to demonstrate significant cash flow improvements over the next year.
The analyst views Splunk's trading multiple at an attractive discount to its peers despite its rapidly growing Cloud business, and it is nearing the end of its model transition.
Price Action: SPLK shares traded lower by 0.93% at $92.23 on the last check Tuesday.