Splunk price target raised to $120 from $115 at Needham

Needham analyst Mike Cikos raised the firm’s price target on Splunk to $120 from $115 and keeps a Buy rating on the shares. The company’s Q4 upside was predominantly fueled by better-than-expected License Revenue that drove upside to its profitability and cash flow, the analyst tells investors in a research note. While the FY24 annual recurring revenue and revenue guidance both missed consensus expectations as management assumed current market conditions persist for the entire year, the stronger-than-expected operating margin guidance more than offset the revenue shortfall, the firm added.