UPDATE: CLSA Upgrades Splunk

Shares of Splunk (NASDAQ: SPLK) are down 6.4 percent to $66.50, despite being upgraded by CLSA from Underperform to Outperform.

Analyst Ed Maguire views the 38 percent drop from the February high as a strategic entry point in a “strategic name.” According to Maguire, the slide has nothing to do with Splunk's fundamentals.

In addition, the company's 2015 revenue growth forecasts are conservative, Maguire said. He said Splunk has an expansive market opportunity going forward, and long-term opportunity in the industrial Internet of Things.