Is it too late to buy Splunk stock after a 14% post-earnings pop?

August 24, 2023 01:04 PM PDT | By Invezz

Is it too late to buy Splunk stock after a 14% post-earnings pop? — Image source: Invezz

Splunk stock could climb further to $150

On Thursday, Brad Sills added the cloud stock to his list of “top picks” and raised his price objective to $150 – a near 35% upside from here.

The analyst recommends owning Splunk stock to play a continued increase in demand for machine data processing. His research note reads:

Splunk is one of the leading solutions to address this emerging market segment, with disruptive technology, high customer ROI, and rapidly expanding customer base.

The software company now expects its revenue to surpass $1.0 billion in the current quarter – some $45 million ahead of analysts.

Why else is he positive on this cloud stock?

Brad Sills was particularly uplifted by the company’s free cash flow that nearly quadrupled in the second quarter. Expanding cloud margins also factored into his bullish view on the Splunk stock.

The Bank of America analyst is convinced that the Nasdaq-listed firm can surprise to the upside in terms of annual recurring revenue. Continued improvement in productivity moving forward could also serve as a catalyst for the cloud stock, he added.

Earlier this week, Garda Capital Partners revealed to have bought 4,225 shares of the California-based company for just over 400,000 in total.

Note that Splunk stock is already up more than 35% versus its year-to-date low at writing.

The post Is it too late to buy Splunk stock after a 14% post-earnings pop? appeared first on Invezz.

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