New Relic downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Rishi Jaluria downgraded New Relic to Sector Perform from Outperform with a price target of $87, down from $95, after the company announced a definitive agreement to be acquired by Francisco Partners and TPG for $87 per share in cash. The 17% premium to Friday’s close, 26% premium to the stock’s 30-day volume-weighted average and overall deal valuation “seems appropriate to us,” though it is below the average multiple paid for software PE transactions, says RBC, which does not expect additional bidders “given this acquisition has been anticipated for quite some time.”