- 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
Splunk makes new highs following UBS upgrade
Jan 7 2014, 13:54 ET