JPMorgan analyst Mark Murphy upgraded Splunk (SPLK) to Overweight from Neutral with an unchanged price target of $130.

The stock closed Monday up $1.17 to $114.82.

The analyst expects a bookings growth rebound in the second half of 2019 and has a favorable view of the company's transition to a recurring/renewable model. The shares, having declined 19% from their highs in late July, are now attractive, Murphy tells investors in a research note. The analyst views consensus estimates "as largely de-risked at this point," and sees potential for multiple expansion as investors start to view Splunk as a recurring/renewable revenue business at scale.

Further, his latest Chief Investment Officer survey "cited a solid uptick" in Splunk spending intentions.