Analysts Shift Gears On New Relic Post-Acquisition: From Outperform To Neutral Ratings And Revised Price Targets

Analysts have mixed reactions to New Relic Inc NEWR acquisition by Francisco Partners and TPG Inc TPG.

Yesterday, NEWR entered into a definitive acquisition deal with an equity valuation of approximately $6.5 billion

RBC Capital Markets analyst Rishi Jaluria downgraded New Relic to Sector Perform from Outperform at a reduced rating of $87 from $95.

The analyst slightly revised estimates for revenues and EPS to $1.025.7 million (from $1,025.1 million) and $1.70 (from $1.73) for 2024, and $1,171.7 million (from $1,171.6 million) and $2.10 (from $2.11) for 2025.

Baird and Credit Suisse downgraded the stock to Neutral from Outperform at a lower price target of $87 (from $92) and $87 (from $113), respectively.

Also, BMO Capital Market analyst Keith Bachman decreased the price target to $87 from $88 at a Market Perform rating.

The analyst raised the estimate for revenue and EPS to $1,027 million (from $1,023 million) and $2.10 (from $1.61) for 2024 and $1,157 million (from $1,152 million) and $2.07 (from $2.01) for 2025.

On the other hand, at a Hold rating, Loop Capital raised the price target to $87 from $80 and Truist Securities to $87 from $77. 

Truist Securities analyst Joel P. Fishbein Jr. raised revenue estimate to $1,030 million (from $1,026 million, consensus: $1,025 million) for 2024 and $1,174 million (from $1,150 million, consensus: $1,169 million) for 2025. 

TD Cowen also raised the price target to $87 from $73, maintaining the Market Perform rating.

Price Action: NEWR shares are trading higher by 0.07% at $84.04 on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorEquitiesM&AMid CapNewsPrice TargetReiterationMarketsAnalyst RatingsBriefsExpert Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...