Splunk may see re-acceleration of ARR growth on better macro, says RBC Capital

RBC Capital analyst Matthew Hedberg keeps an Outperform rating and $125 price target on Splunk ahead of its Q2 results. The firm sees “slight upside” to results and a consistent focus on profitable growth for the company, the analyst tells investors in a research note. RBC adds that it believes the re-acceleration of ARR growth for Splunk is likely as the macro environment improves, noting that the firm also remains bullish on the company’s improved profitability.