HCP - HashiCorp stock rises as BTIG initiates coverage with buy rating

2023-03-23 07:29:13 ET

• HashiCorp ( NASDAQ: HCP ) shares rose nearly 1% in premarket trading on Thursday as investment firm BTIG started coverage on the software company, positing that it is "near dominant" in the infrastructure market.
• Analyst Gray Powell started HashiCorp ( HCP ) shares with a buy rating and $37 per-share price target, implying more than 30% upside from current levels, noting that industry reports and the firm's own channel checks reveal a "well positioned" company capable of seeing significant growth.
• "...[A]s a foundational layer to the deployment of cloud infrastructure and development of new applications, we think [HashiCorp] has a strong opportunity to expand into tangential markets  –  most notably security and also networking," Powell wrote in an investor note.
• Powell also noted that with the stock trading at 6.5 times estimated 2024 enterprise value-to-sales while seeing the potential for 25% long-term revenue growth, there is a "compelling risk reward."
• Earlier this month, HashiCorp ( HCP ) reported strong fourth-quarter results and guidance for fiscal 2024 .

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