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Guggenheim lowers Elastic price target, recommends buying on weakness

Guggenheim lowered the firm’s price target on Elastic (ESTC) to $107 from $136 and keeps a Buy rating on the shares. Shares were down over 10% after-hours with initial guidance for 11% growth significantly below consensus at 14%, but when the firm scrutinizes what was soft in the quarter, coupled with explicit incremental guidance conservatism built in by new CFO Navam Welihinda, the firm recommends buying on weakness at “what we view as attractive valuation,” the analyst tells investors in a post-earnings note.

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