Splunk is now in the position to deliver "mid-teens" increases in annual revenue after a management overhaul that began 18 months ago, according to Jefferies.
"Splunk's growth prospects and addressable market are vast, particularly in the enterprise segment of the market that it addresses," Thill wrote in a note Tuesday.
"With these transitions now largely over and a new mgmt team in place, the financial model is now more straightforward," Thill wrote.
"The focus at SPLK has noticeably shifted in the last year towards profitable growth while exercising disciplined expense management," Thill said.
"As top-line growth stabilizes at scale, we believe the larger opportunity for Splunk lies in improving operational efficiencies and profitability," Thill wrote.
Persons:
Splunk, Brent Thill, Jefferies, Thill, Gary Steele, Steele, — CNBC's Michael Bloom
Organizations:
Jefferies
Locations:
Splunk