Splunk (SPLK) - Get Report shares traded lower on Thursday after the infrastructure software company posted fiscal second-quarter sales that missed Wall Street forecasts, prompting several analysts to lower their price targets.
Splunk shares were down 8.21% at $113.63 after the San Francisco-based company posted a wider-than-expected fiscal second-quarter loss and gave a toned-down outlook for future revenue.
Splunk said it expects second-quarter revenue of between $550 million and $570 million, while analysts had been forecasting revenue of $561.6 million, raising questions about the company’s future growth prospects.
Morgan Stanley noted that investors “… still lack clarity on underlying growth,” and that some of the indicators of growth are “unlikely to catalyze shares.” The firm lowered its one-year target to $150 from $160 though held its equal-weight rating on the shares.
Barclays said that while the results were “solid,” Splunk “… is still in the middle of a cloud and business model transition that will continue to muddy the optics.” Analysts lowered their price target to $170 from $206 and held their overweight rating.
BMO Capital Markets said Splunk’s quarter “was not without blemishes,” and that the stock “… will remain a ‘show me’ for another few quarters.” BMO analysts lowered their price target to $144 from $150 and held their outperform rating.
Citi analysts kept their price target on Splunk at $170 and held their neutral rating, though noted the stock should remain “controversial” given “… lack of annual guidance and no clear signs of inflection in new business trends.”