Elastic initiated with a Neutral at DA Davidson

DA Davidson analyst Gil Luria initiated coverage of Elastic with a Neutral rating and $60 price target. Elastic has been leading with its flexible Lucene-based enterprise search product and then selling observability and security, which means its position “may be in peril” as the market starts transitioning to Vector-based enterprise search, the analyst tells investors in a research note. The firm also sees limited upside to estimates with “unpredictable” consumption trends as cloud optimization persists.