Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Splunk, MongoDB and Workday Preferred at Barclays

Stock Markets Aug 17, 2022 00:44
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
SPLK
+4.38%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WDAY
+3.57%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MDB
+6.35%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ESTC
+4.12%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SNOW
+5.94%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

A Barclays analyst told investors in a research note Tuesday that the firm likes Splunk (NASDAQ:SPLK), MongoDB (NASDAQ:MDB), and Workday (NASDAQ:WDAY) for the off-cycle Q2 earnings cycle.

However, they are cautious on Elastic (NYSE:ESTC) and expect the highest volatility for Snowflake Inc (NYSE:SNOW).

"The share price reaction to CRM's earnings (slightly weaker cRPO but solid margins) will be the best guidepost to judge investors' appetite for the space," said the analyst.

Speaking specifically on Splunk, the analyst said they like the stock into Q2. "Splunk is re-focusing back to its foundational business of security and log analytics, which could be more resilient during tougher macro times and could incidentally help with broader platform adoption of observability solutions. Cross-selling cloud observability along with more sales emphasis on selling and converting term license customers to cloud could drive a solid cloud beat. With a strong positive FCF profile and a inexpensive valuation (~22.5x CY23 EV/FCF), we don't see too much risk compared to other software names," wrote the analyst.

On MongoDB, the analyst said it is one of a few companies in their space that acknowledged the deteriorating environment in its guidance, and it gave management the buffer to now be able to deliver Q2 results close to historic beat levels. "In an environment in which most other companies struggle with such an outcome we believe MDB should stand out and shares should react favorably," he added.

Finally, the analyst explained that Workday's back-office concerns seem priced in. We understand, if the world is going into recession, there will likely be a lower number of back-office transformation deals which would hurt WDAY," said the analyst. "However, we would argue that Q1 was more driven by weak sales execution which seems fixable for Q2 and paired with low expectations should allow the company to stage a comeback."

Splunk, MongoDB and Workday Preferred at Barclays
 

Related Articles

Morgan Stanley Bullish on CarMax Despite Headwinds
Morgan Stanley Bullish on CarMax Despite Headwinds By Investing.com - Oct 05, 2022

By Sam Boughedda In a note to clients Tuesday, Morgan Stanley analysts maintained an Overweight rating on CarMax (NYSE:KMX), cutting the price target to $90 from $124 per...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email