Splunk Stock Downgraded to Hold as Analysts Assess Cisco Acquisition

BMO Capital's Keith Bachman downgraded their rating on Splunk (NASDAQ: SPLK) from Buy to Hold on September 22, 2023. The analyst also raised their price target by 23.6%, from $127 to $157.

Bachman made their moves after it was announced on September 21, 2023, that Cisco intended to acquire the company for $157 per share in cash, representing $28B in equity value. The deal is "reasonable," the analyst said, and they do not envision another buyer.

This rating change by Bachman follows updates from other analysts 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. 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. RBC Capital's Matthew Hedberg raised their price target by 18.9%, from $132, and downgraded their rating on the stock from Buy to Hold.

Currently, 43.5% of top-rated analysts rate SPLK as a Strong Buy or Buy, while 56.5% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Splunk Inc. is a company that provides software and cloud solutions to deliver and operationalize insights from data generated by digital systems. The company offers a range of solutions, including Splunk Platform, Splunk Security solutions, Splunk IT Solutions, and Splunk Observability Solutions, among others.

In terms of performance, SPLK's stock price has increased by 33.9% since its last quarterly report on July 31, 2023. Year-over-year, the stock is up 74.2%. During this period, SPLK has outpaced the S&P 500, which has risen by 15.4%.

BMO Capital analyst Keith Bachman is ranked in the top 4% of Wall Street analysts by WallStreetZen, with an average return of 6.6% and a 56.5% win rate. They specialize in the Consumer Defensive, Consumer Cyclical, and Technology sectors.

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