New Relic initiated with Buy, $100 target at DA Davidson

DA Davidson analyst Gil Luria last night initiated coverage of New Relic (NEWR) with a Buy rating and $100 price target. New Relic is a leading player in the observability space, and has an opportunity to "close the growth gap" to its key competitors based on its pricing model and faster adoption of OpenTelemetry, the analyst tells investors in a research note. The firm believes the current "spend-conscious environment" sets New Relic up with an opportunity to narrow the growth and valuation gap vis-a-vis its comparables, specifically Datadog (DDOG). It sees New Relic’s new pricing model as timely in an era of rationalized cloud spend.