Goldman Sachs analyst Christopher Merwin lowered his Q2 billings estimate for New Relic to 7% growth from 13% after the company lowered its full-year revenue guidance, stating that he believes the quarter coming in below plan is what resulted in the lowered FY20 outlook. He also lowered his FY20 revenue estimate by 2% and cut his FY21 revenue estimate by 3%, leading him to lower his price target on New Relic shares to $52 from $65. While noting that the company also announced some management changes, and stating that he expects the new management team to increase focus on improving execution, Merwin keeps a Sell rating on New Relic shares, as he thinks the broader IT monitoring space continues to converge and competitors continue to ramp up investments in product and sales.