Splunk makes new highs following UBS upgrade


UBS, which had kept a Neutral rating on Splunk (SPLK +5%) for a long time due to valuation concerns, has upgraded shares to Buy. The machine data analytics leader has made fresh highs in response.

Curiously, UBS says it's upgrading Splunk precisely because the company's multiples have expanded (its EV/sales ratio now stands at a steep 20), defying expectations that they wouldn't, and because the firm now expects Splunk to maintain a similar valuation in 2014.

Like other firms, UBS touts Splunk's big data credentials, and forecasts strong margin expansion going forward.

Previous: Cantor calls Splunk a top 2014 pick

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Comments (2)
  • Weighing Machine
    , contributor
    Comments (910) | Send Message
     
    why would anyone listen to ubs?
    7 Jan 2014, 01:57 PM Reply Like
  • bgold1955
    , contributor
    Comments (2352) | Send Message
     
    Not sure about UBS, but SPLK is & has been a great investment. Best big data analyzing stock out there. Still has more upside.
    7 Jan 2014, 03:35 PM Reply Like
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