In a report released yesterday, Ittai Kidron from Oppenheimer maintained a Buy rating on New Relic Inc (NEWR), with a price target of $125. The company’s shares closed yesterday at $106.24, close to its 52-week high of $114.78.
Kidron observed:
“New Relic delivered another strong quarter ahead of expectations, driven by steady execution (sales/channel expansion, international investment, up-sell momentum…), broadbased product demand (APM, Infrastructure, Insights…), and increased large deal activity (816 >$100K accounts, +30% YoY). The strong results reinforce our comfort in our thesis and bullish stance on the shares. We see a long runway for growth as New Relic focuses on driving larger deal sizes and multi-product use with larger customers. We’re also positive on New Relic’s acquisition of SignifAI, which adds event intelligence (TAM expansion) and AI/ML capabilities that will strengthen New Relic’s ability to provide end-to-end and contextual visibility in a single-platform (capturing more DevOps mind share/spending). Maintain Outperform, while raising estimates and price target to $125 from $110.”
According to TipRanks.com, Kidron is a top 25 analyst with an average return of 28.0% and a 69.6% success rate. Kidron covers the Technology sector, focusing on stocks such as Citrix Systems, Cloudera Inc, and Nutanix Inc.
New Relic Inc has an analyst consensus of Strong Buy, with a price target consensus of $106.83.
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Based on New Relic Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $8.34 million. In comparison, last year the company had a GAAP net loss of $7.73 million.
Based on the recent corporate insider activity of 129 insiders, corporate insider sentiment is negative on the stock.
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New Relic, Inc. engages in the provision of software-as-a-services for digital intelligence products. It allows the users to monitor software and infrastructure performance and measure end user activities through desktop and mobile devices. The company was founded by Lewis Cirne in September 2007 and is headquartered in San Francisco, CA.
