DA Davidson analyst Rishi Jaluria kept his Buy rating and $125 price target on New Relic after its "strong" beat-and-raise Q4 results. The analyst says the stock price sold off in the aftermarket session on below-consensus FY20 margin guidance, but sees the company's strategy to reinvest the upside from the quarter into its growth runway as the "right moves" given the company's market opportunity in the "ongoing trend of digital transformation." Jaluria lowers his FY20 EPS view to 56c from 76c but also points to the valuation discount on the stock at 8-times enterprise value to expected 2020 revenue relative to its peers.