Splunk price target raised to $127 from $117 at BMO Capital

BMO Capital analyst Keith Bachman raised the firm’s price target on Splunk to $127 from $117 and keeps an Outperform rating on the shares. The company’s Q2 results and guidance were “solid”, highlighted by growth in net new annualized recurring revenue for the first time in six quarters and another raise to FY24 free cash flow guidance, the analyst tells investors in a research note. Guidance metrics for the second half of FY24 also appear comfortably achievable, the firm added. BMO remains positive on Splunk given its multiple avenues for total addressable market expansion and revenue growth, including Security, IoT, and BI.