Elastic upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded Elastic to Overweight from Equal Weight with a price target of $115, up from $70. The analyst believes the company’s revenue growth will bottom out in fiscal Q4 and reaccelerate in fiscal 2025, largely driven by generative artificial intelligence and share gains in the Log/SIEM markets. Elastic can also expand operating margins to low-teens over the next two years, the analyst tells investors in a research note. The firm says Elastic is well positioned to capture GenAI workloads, leveraging key features like ESRE and vector search.