Elastic, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Koji Ikeda from Bank of America Securities reiterated a Hold rating on the stock and has a $90.00 price target.
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Koji Ikeda’s rating is based on a combination of factors that reflect both positive and concerning aspects of Elastic’s recent performance. On the positive side, Elastic reported total revenue, Cloud revenue, and non-GAAP operating income that exceeded expectations, and the company raised its fiscal year 2026 guidance midpoints. However, the growth in key metrics such as sales-led subscription revenue and Cloud revenue has decelerated, which contrasts with the strong demand commentary from management.
Despite the impressive commentary on large deals, including significant commitments from customers, the mixed growth metrics raise questions about the company’s execution. The deceleration in subscription and Cloud revenue growth, alongside a lower multiple for key metrics, led to a reduction in the price objective to $90. This balanced view of potential and risk underpins the Hold rating, as the analyst seeks more consistent execution before considering a more favorable outlook.
According to TipRanks, Ikeda is a 5-star analyst with an average return of 12.4% and a 58.74% success rate. Ikeda covers the Technology sector, focusing on stocks such as Autodesk, Elastic, and JFrog.