Elastic price target lowered to $110 from $125 at Piper Sandler

Piper Sandler lowered the firm’s price target on Elastic (ESTC) to $110 from $125 and keeps an Overweight rating on the shares. While management noted Q2 revenue was impacted by variability in seasonality and some pushed-out federal deals, the firm believes the overall print was relatively solid with cloud growth modestly above expectations and a solid raise to full-year guidance. Positives also came from continued traction with the GenAI customer cohort, new logo momentum and larger commitments in the quarter. Piper remains optimistic around Elastic’s opportunity with AI and is encouraged by the raised guide despite a lower revenue beat than last quarter.