Two days ago, Splunk, Inc. (SPLK), a company whose software platform allows users to analyze large volumes of data in real time, announced its acquisition of TruSTAR, a cloud native intelligence management tool. Both companies offer data-centric programs.
The following day, Jack Andrews of Needham & Company released a report assigning a Buy rating, with a Street-high price target of $265. This target represents a 124.48% upside potential for the next 12-month period. On TipRanks, Andrews holds a 5-star rating, and he is ranked #289 out of over 7,000 analysts on TipRanks. (See Splunk stock analysis on TipRanks)
Andrews notes that the acquisition represents “a small, tuck-in deal to help customers automate security operations,” and is optimistic about Splunk’s future, stating, “Splunk represents one of the few open-ended growth stories in technology.” He goes on to explain how the quality of the platform will only improve in correlation with the amount of customers the company is able to add.
Speaking to TruSTAR's strengths, Andrews mentions that by using its solutions, "customers can enrich their detection and response workflows with normalized intelligence to increase the effectiveness of data from security tools and reduce the time it takes to remediate issues before it impacts the business." He added that TruSTAR's intelligence platform will be integrated into Splunk's security portfolio, which will allow customers to enhance the quality of their Security Operations Center functionality.
Other top analysts were also optimistic on the stock, albeit somewhat more conservative with their price targets. 5-star analysts Erik Suppiger and Ittai Kidron assigned price targets of $160 and $203, respectively.
According to TipRanks, Splunk remains a Moderate Buy, based on 13 Buy and 10 Hold ratings. The average analyst price target for SPLK is currently $184, well above its Friday closing price of $118.05.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.