Splunk (NASDAQ: SPLK) stock price bounced more than 50% in fiscal 2019 to an all-time high of $140. But, analysts are suggesting investors hold their positions in the software company. The majority of market analysts are presenting a bullish outlook for Splunk amid its financial growth and strong demand for its products.
Splunk stock price is currently trading around $150 with the market capitalization of $23 billion. It offers software for machine log analysis. The company’s most prominent solution includes Splunk Enterprise, which is used across application management, IT operations, and security.
Solid Financial Numbers are Backing Splunk Stock Price
The company has topped third-quarter revenue and earnings estimates by a wide margin. In addition, its financial numbers grew significantly when compared to the previous periods. Its Q3 revenue of $626 million rose by 30% from the year-ago period. Its software revenue came in at $454 million, up 40% year over year.
Its total ARR rose by 53% to $1.4 billion. In addition, the company signed 440 new enterprise customers during the third quarter. These customers include big names such as Airbus (OTCPK: EADSF), Anaplan (NYSE: PLAN), and Chegg (NYSE: CHGG).
Moreover, the company has increased its outlook for the final quarter and full year. Splunk expects full-year revenue to stand around $2.3B to $2.35B.
“Splunk continues to show the world how our Data-to-Everything Platform is uniquely positioned to bring data to every question, decision and action,” said Doug Merritt, President, and CEO, Splunk.
Analysts Raised SPLK Share Price Target
The majority of analysts are seeing the upside momentum in SPLK share price. For instance, Wedbush has provided a $180 price target with a Buy rating. Goldman Sachs also provided a $180 price target, citing the potential growth in free cash flows.
Cowen analyst is showing confidence in its latest product offerings. The analyst Derrick Wood says elevated sales turnover along with the new pricing structure could lead to profitability in the coming quarters.