BofA lowered the firm’s price target on Elastic (ESTC) to $96 from $104 and keeps a Neutral rating on the shares. Recent checks suggest competition for AI workloads is increasing, which could weigh on Elastic’s revenue growth, the analyst tells investors in an earnings preview note ahead of the company’s results due on Thursday after the close. The firm, which adds that it believes the key metric to watch is subscription revenue excluding monthly customers, thinks it could be a catalyst if growth in this measure accelerates to 20%-plus year-over-year from 19.3% seen last quarter.
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