This rating update came after the announcement on September 21, 2023, that Cisco had entered into a definitive agreement to acquire Splunk for $157 per share in cash, representing $28 billion in equity value. It seems that Kim's downgrade reflects a change in their outlook for the stock following this acquisition news.
In addition to Yun Kim's rating change, other analysts also updated their price targets and ratings for Splunk on September 22, 2023. Mizuho's Gregg Moskowitz raised their price target by 35.3% from $116 and maintained their Hold rating on the stock. BMO Capital's Keith Bachman raised their price target by 23.6% from $127 and downgraded their rating on the stock from Buy to Hold. Rosenblatt's Blair Abernethy raised their price target by 8.3% from $145 and downgraded their rating on the stock from Strong Buy to Hold.
According to the analyst ratings, 43.5% of top-rated analysts currently rate SPLK as a Strong Buy or Buy, while 56.5% see it as a Hold. It is worth noting that no analysts recommend or strongly recommend selling the stock.
Looking at the stock's performance, SPLK has shown significant growth. Since its last quarterly report on July 31, 2023, the stock price has increased by 33.9%. Furthermore, on a year-over-year basis, SPLK is up by an impressive 74.2%. These figures indicate that the stock has outperformed the S&P 500, which has seen a 15.4% increase during the same period.
Loop Capital analyst Yun Kim, who downgraded Splunk's rating, is ranked in the top 7% out of 4,337 Wall Street analysts according to WallStreetZen. Kim has an average return of 20.2% and an impressive 64.9% win rate. Their areas of expertise lie in the Consumer Defensive and Technology sectors.
Splunk Inc. is a company that provides software and cloud solutions to deliver and operationalize insights from data generated by digital systems. Their offerings include the Splunk Platform, which encompasses various capabilities such as collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring, and data management. Splunk also provides different solutions tailored for cybersecurity teams, IT operations teams, and infrastructure and application development. Additionally, they offer Ecosystem Solutions to enable customization and integration with third-party developers, partners, and customers.
WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).
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