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 an agreement to be acquired by TPG and Francisco Partners at $87 per share in cash in a $6.5B deal. The firm states that it does not expect additional bidders given that this acquisition has been anticipated for quite some time. RBC also notes that the transaction equates to an enterprise value multiple of 6.2-times expected next-12-month’s revenue, which “seems reasonable” and in line with New Relic’s “medium growth peer group”.