Needham & Company Starts New Relic (NEWR) at Buy

Needham & Company initiates coverage on New Relic (NYSE: NEWR) with a Buy rating and a price target of $47.00.

Analyst Scott Zeller comments, "New Relic is one of the few Big Data software public companies, and is also pure SaaS with cloud-based architecture and ratable revenue. The company has been growing revenue at 65%+ y/y for four consecutive quarters, and we believe revenue may accelerate due to its continued move upstream. New Relic is disrupting legacy Data Center players by offering its Application Performance Management (APM) technology in the Cloud, which is attractive to SMBs and also large enterprises looking to minimize capital expenditures. Our $47 target is 9x EV/FY17(e) revenue."

For an analyst ratings summary and ratings history on New Relic click here. For more ratings news on New Relic click here.

Shares of New Relic closed at $34.97 yesterday.

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