Loading...
Loading...
- Splunk Inc's SPLK 4% global workforce reorganization reinforced Citi analyst Fatima Boolani's positive catalyst watch view on the upside OPM and FCF guidance surprise.
- It also bolstered the budding bull case for expanding profitability and corresponding valuation re-expansion scope.
- In the analyst's OPM sensitivity analysis, Boolani anticipated a ~5% reduction would bring ~150bps of OPM upside vs. consensus. This swift undertaking now appears more credible with a new CFO formally appointed.
- Actions appear to be a mix of both headcount reduction and relocation.
- Though the analyst sought clarity on the impact on functional areas, current management posture and trends would suggest this likely involves further streamlining of the GTM org ("single-seller model") and technical and non-customer facing headcount reshuffling to lower-cost jurisdictions.
- While hard to dismiss this as intimating a more brutal selling environment (affecting forward ARR growth), net-net, the stock should react positively.
- Needham analyst Mike Cikos maintained a Buy and raised the price target from $100 to $115.
- Price Action: SPLK shares traded higher by 4.81% at $104.60 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in