New Relic price target raised to $88 from $62 at BMO Capital

BMO Capital analyst Keith Bachman raised the firm’s price target on New Relic to $88 from $62 but keeps a Market Perform rating on the shares. The company reported a "solid" operating quarter with a Q3 earnings beat that highlights an improved operating leverage and solid growth in both renewals and consumption, the analyst tells investors in a research note. BMO Capital adds however that it prefers to see more evidence of sustainability of the competitive tech stack in a crowded field before considering moving to a more constructive stance on New Relic shares.