Wedbush initiates Elastic with a Neutral and $67 price target

As previously reported, Wedbush analyst Taz Koujalgi initiated coverage of Elastic with a Neutral rating and $67 price target. The analyst believes that Elastic has a long runway for growth given its large addressable market, but is a bit concerned by the slowdown in recent momentum and smaller beats versus prior quarters. His analysis also shows that sales productivity appears to be declining, and he would like to keep any eye on trend. Given the current momentum, Koujalgi also worries about the risk to next year’s guide, and what that could mean for the long-term target of $2B.