- Despite the "undemanding" valuation, Morgan Stanley sees "more work ahead" before Splunk's (NASDAQ:SPLK) multiple sees meaningful expansion, prompting a downgrade from Overweight to Equal-Weight.
- Analyst Keith Weiss: "Challenges closing large deals, competitive noise, and a heightened level of executive departures increase the execution risk at SPLK near term."
- Price target drops from $213 to $160.
- Splunk shares are down 2.4% pre-market to $130.80.
- Earlier this month, KeyBanc downgraded Splunk after the CTO resigned.