Splunk is a market leader in collecting, storing and analyzing machine-generated data, positioning the company to be a market leader in the Internet of Things era. Rangan says there are a number of long-term catalysts that should help propel Splunk's stock, including its exposure to the economy's digital transformation, its massive addressable market, its defensible position, its recurring revenue model, its operating margin leverage and its opportunity for average contract value growth. Splunk has a Beat Factor of 91. Bank of America has a "buy" rating and $135 price target for SPLK stock.