The software provider's total addressable market will increase by an average of 11% during the next few years, BMO said. Splunk's total addressable market during 2015 was about $41 billion, according to the firm.
Splunk faces opportunities such as its security business, which BMO projects will rise by 40% during fiscal 2017, the firm said.
"Given that we project less than $900 million in fiscal 2017 revenues, we believe that Splunk has a lot of room for growth," BMO said.
Splunk stock is up by 1% to $46.60 in pre-market trading on Friday.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "sell" with a ratings score of D. This is driven by multiple weaknesses, 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, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: SPLKSPLK data by YCharts