What Happened:
Shares of Cloud infrastructure automation platform HashiCorp jumped up 7.22% in the after-market session after analyst Gray Powell from BTIG initiated coverage on the company's stock with a Buy rating and a price target of $37. The target price implies more than 30% upside from the current levels. After the initial pop the shares cooled down to $29.3, up 4.23% from previous close.
What is the market telling us:
HashiCorp's shares are volatile and over the last year have had 87 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
HashiCorp is up 13.2% since the beginning of the year, but at $29.3 per share it is still trading 49% below its 52-week high of $58.22 from April 2022. Investors who bought $1,000 worth of HashiCorp's shares at the IPO in December 2021 would now be looking at an investment worth $344.41.
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