Needham upgrades HashiCorp to Buy on conservative 2023 estimates

Needham upgraded HashiCorp to Buy from Hold with a $39 price target. The analyst thinks Street estimates for 28% growth in 2023 are conservative, setting HashiCorp up for continued beat and raise quarters in a "tough environment." In addition, the stock’s valuation is near trough levels 2024 estimates making for an attractive entry point, the analyst tells investors in a research note. The firm believes HashiCorp’s margin leverage exiting its investment cycle puts the company on track to exceed goals for breakeven in the second half of fiscal 2026 with a projected $2B annual recurring revenue longer-term.