Analyst Koji Ikeda of Bank of America Securities reiterated a Hold rating on Elastic, boosting the price target to $111.00.
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Koji Ikeda’s rating is based on a combination of factors that reflect both the strengths and challenges facing Elastic. The company reported strong quarterly results, with sales-related subscription revenue showing significant growth. This indicates a positive reception of Elastic’s products in the market and effective go-to-market strategies. However, despite this positive performance, the overall revenue growth forecast aligns closely with industry peers, suggesting a balanced risk and reward profile.
Additionally, Elastic’s recent price increase for its Cloud and self-managed customers has been a positive move, as it did not lead to higher attrition rates. This pricing strategy, along with the growing adoption of Elastic’s AI features, positions the company well for future growth. However, the potential for execution risks remains, which tempers the overall outlook. As a result, Ikeda maintains a Hold rating, reflecting confidence in Elastic’s potential while acknowledging the competitive and execution challenges ahead.