Splunk price target lowered to $158 from $163 at Wedbush
Wedbush analyst Steve Koenig lowered his price target for Splunk to $158 from $163, while reiterating an Outperform rating on the shares ahead of quarterly results. The company's Q1 reset to free cash flow guidance has largely de-risked billings estimates for Q2 and the second half of the year, and job postings remain sharply higher year over year across the board., he contends. Also, the analyst's industry checks indicate customer demand for Splunk's solutions remain strong, as it continues to be highly differentiated in its ability to ingest large amounts of data from diverse sources. Koenig adds that contacts were generally positive on Splunk's ability to continue to execute well on term and cloud contracts. On the negative side, contacts questioned the company's ability to retool its offering for next-generation cloud technologies, he notes.