Splunk price target lowered to $135 from $150 at Credit Suisse

Credit Suisse analyst Phil Winslow lowered the firm’s price target on Splunk to $135 from $150 and keeps an Outperform rating on the shares. The analyst says Q3 results and forward guidance boost his confidence in his thesis that Splunk is exiting a multiyear, multi-part transitional period that has obscured underlying growth and profitability and he continues to believe that the sustainability of growth of the core Splunk index, shift to the cloud, and its commitment to becoming a leader in observability will enable Splunk to reaccelerate recurring revenue growth at least 20% annually-a level of growth that Winslow does not believe is reflected in valuation.