Splunk's Observability Platform Likely To Add Value, Analyst Says

Wells Fargo analyst Andrew Nowinski initiates coverage on Splunk Inc SPLK with an Overweight rating and a price target of $95.
He believes Splunk has the best overall observability platform in the market. He also observed it as deeply entrenched with many large enterprise customers, enabling long-term durable growth and profitability.
Splunk’s revenue growth is also starting to normalize, which should positively impact the valuation.
The operating margin is also set to expand as revenue growth normalizes.
Finally, he believes Splunk’s pricing model is still a lingering pain point. Still, channel partners seem to have increasing confidence in CEO Gary Steele and the changes he is making, which should ultimately positively impact revenue growth.
Price Action: SPLK shares traded lower by 0.68% at $71.63 on the last check Tuesday.
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