Following discussions with four key contacts from the ecosystem of Splunk Inc
Murphy maintains a Neutral rating on the company, with a price target of $60.
Discussions with key contacts from Splunk’s ecosystem suggested demand continues to be robust, albeit with some caveats.
“Partners observe sustained demand with one saying that reps ‘are doing very well and exceeded their
On the other hand, one reseller expects 2016 to be “down-year,” driven possibly by his expectation of Splunk’s decreasing support for resellers.
The company’s partners referred to sales and channel leadership changes as a “pivot,” referring to the new CRO, CMO and
Murphy noted that Splunk’s partners “see increasing discussions, though a contact’s ‘experience with Cloud is that it isn’t yet ready.’ He believes Splunk’s reps don’t want to sell Cloud because it potentially creates unappealing customer service issues.”
Some also expressed concern regarding scalability limitations, stating that it could open the doors to increased competition.
At last check, Splunk was down 0.71 percent at $57.01.
|Oct 2016||Piper Jaffray||Initiates Coverage On||Overweight|
|Oct 2016||Guggenheim Securities||Downgrades||Buy||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.