Elastic price target raised to $87 from $84 at RBC Capital

RBC Capital analyst Matthew Hedberg raised the firm’s price target on Elastic to $87 from $84 and keeps an Outperform rating on the shares. The company’s Q1 results were “strong”, and highlighted the positive momentum in Generative AI, specifically Vector Search, along with ongoing trends around platform consolidation, the analyst tells investors in a research note. Sales strength also flowed through to better-than-expected profitability as Elastic management will look to continue to manage costs while investing in growth drivers, the firm added.