UPDATE: Canaccord Genuity Initiates Coverage on Splunk on Long-Term Upside

In a report published Friday, Canaccord Genuity analyst Richard Davis initiated coverage on Splunk (NASDAQ: SPLK) with a Buy rating and $62.00 price target.

In the report, Canaccord Genuity noted, “Big Data captures imaginations, but the more valuable insight is that Splunk has developed one of the leading plays, and only mid-cap public investment play, on something more interesting – helping companies understand what's happening in their business. More specifically, that means discovering what's happening and assessing the importance of recorded events – whether that is elevator run times, trains, routers or e-commerce customer activity. In effect, Splunk is a critical infrastructure underlying ‘The Internet of Things.' The firm does this with best-in-class indexing, search and as of June an analytics engine for Hadoop.”

Splunk closed on Thursday at $55.39.