Needham analyst Jack Andrews lowered the firm’s price target on Splunk to $100 from $118 but keeps a Buy rating on the shares. The company’s Q3 results demonstrated the model’s strong leverage, with revenue outperformance and expense controls driving better than expected operating margin, the analyst tells investors in a research note. Andrews adds however that the revenue beat was also due to upfront revenue recognition from a greater share of Term License revenue in the mix, and management noted "persistent delays to customers’ Cloud migrations and expansions".
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Published first on TheFly
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