Splunk downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Splunk (SPLK) to Sector Perform from Outperform with a price target of $157, up from $132 after Cisco (CSCO) entered into a definitive agreement to acquire Splunk for $157 per share in cash. The deal makes a lot of sense given the potential for synergies between Splunk and Cisco’s security business and the AppDynamics platform, the analyst tells investors in a research note. The firm expects regulatory scrutiny but says the deal doesn’t need China approval. It views the takeover valuation as fair and does not see other bidders as likely.