Analyst Koji Ikeda from Bank of America Securities reiterated a Hold rating on Elastic and decreased the price target to $96.00 from $104.00.
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Koji Ikeda has given his Hold rating due to a combination of factors impacting Elastic’s market position and growth potential. One of the primary concerns is the heightened scrutiny on the predictability of paid open-source models, which could affect investor confidence unless Elastic can demonstrate consistent growth in its subscription revenue, particularly excluding monthly customers. Additionally, while Elastic’s involvement in the AI sector could be a positive catalyst, the competitive landscape for AI workloads is intensifying, potentially hindering revenue growth.
Furthermore, Elastic’s shares are trading at a discount compared to its infrastructure software peers, yet the risk/reward balance appears even due to these competitive pressures. The company’s conservative revenue growth guidance for FY26, which suggests a modest increase, does not inspire confidence for significant upside. As a result, Ikeda has reiterated a Neutral stance, adjusting the price objective to reflect these competitive risks.
In another report released on August 18, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $83.00 price target.