Splunk
Splunk Inc. (NASDAQ: SPLK) provides a real-time platform for collecting and analyzing data along with security and IT infrastructure services. The company’s market cap is around $15.1 billion. Splunk has not posted a profit in the previous four quarters and its net loss over the 12-month period was $1.17 billion. Free cash flow for the 12 months was $187.7 million. Free cash flow per share totaled $1.17 over the past year.
BTIG analyst Gray Powell has a Buy rating on the stock with a price target of $132. Powell is replacing Zscaler, its former top pick in the space, with Splunk, commenting that BTIG sees ” a few dynamics such as [an] accelerating shift to cloud and improving [operating cash flow] profile that could help SPLK stock reate to a higher trading multiple over the course of the year.” The stock is also trading at a discount to its peers in the security space, and a rumored $20 billion buyout bid from Cisco that never materialized also figures into Powell’s calculations.
Based on Tuesday’s closing price of $94.42, the upside potential at BTIG’s price target is 39.8%. The stock’s 52-week range is $84.63 to $176.66.
Tyler Technologies
Tyler Technologies Inc. (NYSE: TYL) provides integrated information management solutions and services to customers in the public sector. The company’s market cap is around $13.9 billion, and it has posted net income of $164.5 million over the past four quarters. Free cash flow totaled $321.7 million, and free cash flow per share came to $7.76 for the four quarters.
BTIG analyst Matt VanVliet said that Tyler was the firm’s top pick for the second half of 2022 because “we expect the public sector to remain much more resilient than the broader economy which should help the shares outperform the remainder of the year.” About half the $350 billion in the federal American Rescue Plan Act will be spent by the end of this year and the rest (most of which is already in the hands of state and local governments) is scheduled to be spent by the end of 2024.
The stock closed at $340.13 on Tuesday, implying an upside potential of 75.5% based on BTIG’s price target of $585. The stock’s 52-week range is $300.85 to $557.55.
Uber Technologies
Ride-sharing giant Uber Technologies Inc. (NYSE: UBER) has a market cap of $42.55 billion and is currently trading much closer to its 52-week low than to its 52-week high. Uber has posted a net loss of $6.32 billion over the past four quarters and has a negative free cash flow of $108 million (negative $0.06 per share). BTIG analyst Jake Fuller has a price target of $55 on the Buyated stock.
Despite a “health rebound in rideshare, ongoing strength in delivery and breaking through to EBITDA profitability,” Uber was caught in the sell-off of growth stocks in the first half of the year, and the stock has dropped nearly half its value. Fuller also noted that Uber has reported an EBITDA profit for three successive quarters and expects to be free cash flow positive for 2022.
Shares closed at $22.52 on Tuesday, implying a potential upside of 144% based on BTIG’s price target. Uber stock’s 52-week range is $19.90 to $51.03.
And More
BTIG also has Buy ratings on one London-traded large cap stock, Flutter Entertainment, which owns sports betting site FanDuel, and three small/mid-cap techelated stocks: ForgeRock, CarGurus and Sprout Social.
Originally posted at 24/7 Wall St.
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