Story updated at 10 a.m. to reflect market activity.
Shares of Splunk were gaining 7.8% to $69.99 in morning tradng.
The analyst firm raised its fiscal 2015 EPS estimates for the software company to 4 cents a share, up from previous estimates of 1 cent a share for the year. Pacific Crest raised its 2016 EPS estimates to 7 cents a share from 3 cents a share.
"Billings growth accelerated to 50% y/y, increasing our confidence that Splunk is addressing an open-ended, greenfield market," analysts Brent Bracelin and Brendan Barnicle wrote. "It remains on track to reach $1 billion in revenue. Buy SPLK with upside to $80 as it becomes the gold standard for searching and analyzing diverse data sets."
TheStreet Ratings team rates SPLUNK INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SPLUNK INC (SPLK) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."