NEWR - New Relic
* 51 M shares float size, approx 9% of the float is held short in the most recent reporting period
* on Tuesday, NEWR reported a less than expected loss, and gained 38.5% on the day ...
the largest daily percentage increase on record & green 9 of the past 10 days
Monthly & daily charts shown below, followed by CFRA's upgrade to Strong Buy on Nov. 10 -
NEWR daily -
CFRA Upgrades Shares Of New Relic, Inc. To Strong Buy From Buy
02:45 AM EST, 11/10/2021
Analysts at CFRA have summarized their opinion as follows:
We raise our target by $75 to $168 due to impressive Q2 FY 22 (Mar.) results,
especially revenue, +18% Y/Y, well above expectations and accelerating from 10% in Q1.
We see NEWR as emerging out of the "trough" of a successful business model transformation,
poised for growth re-acceleration, and set to benefit more fully from its strong underlying
technology and revamped platform; hence, it is in the midst of a major valuation re-rating upward.
Yet, we also cannot declare "transformation victory" quite yet.
Our 11.9x P/S on $962m in projected sales in '23 is the midpoint between a 1-year mean
of 6.5x and a 10-peer median of 17.2x, yielding our $168 target.
Revenue of $196M, +18% Y/Y, beat by $13M; EPS loss widened by $0.03 to $0.10 but beat by $0.03.
Our EPS forecasts are now: $0.37 loss in '22 (+$0.06); $0.47 in '23 (+$0.07);
and $1.70 in '24 (+$0.16). Due to its outstanding technology and lower valuation
($11B) vs. APM rivals DDOG ($61B) and DT ($21B), NEWR is an attractive target for M&A, in our view. |
