Elastic price target lowered to $78 from $80 at BofA

BofA lowered the firm’s price target on Elastic to $78 from $80 and keeps a Buy rating on the shares. Given mixed commentary in the recent earnings cycle from Elastic’s infrastructure peers on consumption and deal cycles trends, the firm trims its FY24, FY25 and FY26 revenue estimates as it believes Elastic’s demand environment remains under pressure from the macro backdrop. However, BofA’s long-term view that Elastic is a disruptor in the search, observability, and security categories is unchanged, the analyst tells investors.