Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Evercore downgrades Splunk to 'in line' on pending acquisition

Published 10/09/2023, 10:10 AM
Updated 10/09/2023, 10:11 AM
© Reuters.  Evercore downgrades Splunk (SPLK) to 'In Line' on pending acquisition
SPLK
-

Evercore ISI cut Splunk Inc (NASDAQ:SPLK) to an In-Line rating (From Outperform) while maintaining their 12-month price target of $157.00 on the stock to reflect the company’s pending acquisition by Cisco (NASDAQ:CSCO).

Cisco announced the plans to acquire the American software company in late September for $157 per share.

"We're excited to bring Cisco and Splunk together,” said Cisco CEO Chuck Robbins.

Upon close of the acquisition, Splunk President and CEO Gary Steele will join Cisco's Executive Leadership Team reporting to Chair and CEO Chuck Robbins.

The stock is currently trading about 6.5% below the acquisition price of $157 per share, which is equivalent to 6.3 times the EV/CY24 ARR, 7.0 times the EV/CY24 sales, and 27.2 times the EV/CY24 FCF.

Shares of SPLK are up 0.10% in early trading Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.