New Relic (NEWR) PT Raised to $84 at Needham & Company

August 4, 2021 6:18 AM EDT
Get Alerts NEWR Hot Sheet
Price: $76.23 -0.63%

Rating Summary:
    10 Buy, 13 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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Needham & Company analyst Jack Andrews raised the price target on New Relic (NYSE: NEWR) to $84.00 (from $78.00) while maintaining a Buy rating.

The analyst commented, "NEWR reported solid 1QFY22 results as revenue and EPS were ahead of our estimates and consensus. Our key takeaway is that early cohort data and monthly linearity imply that the transition to a consumption-based model could create a path to higher growth that is more in-line with the industry. In particular, early customers on the consumption model have begun to anniversary and are consuming at higher rates compared to their prior levels. Additionally, the model is leading to growth in new self-service customers which is helping to stabilize the declines in total customers accounts seen in FY21. Although it may be a few quarters until expansions from transitioned accounts have a more material impact on revenue since most of the accounts anniversary the change in 2H22, we are encouraged by early traction. Reiterate BUY."

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