Snowflake and Splunk lead list of post-Thanksgiving earnings reports

Investors returning from what for many will be a long Thanksgiving holiday in the United States will find the software infrastructure sector surprisingly busy at the end of the month.

On November 30, Snowflake (New York stock market :SNOW), Splunk(NASDAQ:SPLK) and Elastic (New York stock market :IT IS) are ready to deliver their quarterly reports, while Sumo Logic (NASDAQ:SUM) follows those heels a few days later, with its final earnings report on Dec. 5.

The four companies provide various cloud-based analytics, valuation and data management technologies, and Jefferies analyst Brent Thill said in a recent report that each has specific issues investors should take into account. account in the next list of results reports.

Thill called Snowflake (SNOW) the strongest among these software companies due to its fundamentals, as it “guided quite cautiously and left room to beat the top of its quarterly outlook.” Thill has a buy rating and price target of $200 per share on Snowflake’s (SNOW) due in part to the company’s “strong fundamentals”.

Thill said that Snowflake (SNOW) product revenue has room for growth, but heightened economic uncertainty is raising concerns that the market will deteriorate in the second half of next year.

For Splunk (SPLK), Thill called the company’s stock a “value pick”. Thill said that Splunk (SPLK) “has undergone a major cloud business model transition” over the past few years, which has caused some volatility with respect to the company’s quarterly results, but it exceeds “the worst of financial headwinds” in conjunction with its transition to a cloud-based business model. Thill has a buy rating and price target of $100 per share on Splunk’s (SPLK) Inventory.

With Elastic (IT IS), Thill has a holding rating and a price target of $65 per share on the company’s stock. Thill said the private technology and services provider could “remain relatively resilient” in what has been a broader and challenging market for infrastructure software as its revenue expectations remain “reasonable” and could exceed its outlook for revenue growth of 27% year-on-year. from.

Thill was a bit more cautious about Sumo Logic’s prospects (SUM), as its third-quarter revenue is expected to grow at a slower pace year-over-year than in the first and second quarters of this year. Thill said Sumo is (SUM) the growth margin “remains capped, with a low probability of earnings surprises” due to a difficult economic environment for the software sector.

Thill has a holding rating and price target of $8 per share on Sumo Logic (SUM) Inventory. Overall, Wall Street analysts give the company’s stock a consensus buy rating, as does Seeking Alpha’s quantitative system, which historically outperforms the stock market.