Splunk price target raised to $120 from $105 at Stifel

Stifel analyst Brad Reback raised the firm’s price target on Splunk to $120 from $105 and keeps a Hold rating on the shares. Splunk beat Q2 expectations as the company continues to benefit from better than anticipated upfront term license recognition and “aggressive expense management,” the analyst tells investors. While the stock “screens cheap,” the firm thinks that meaningful multiple expansion will “remain elusive until ARR growth stops compressing,” the analyst added.