Elastic price target lowered to $116 from $122 at Guggenheim

Guggenheim analyst Howard Ma lowered the firm’s price target on Elastic (ESTC) to $116 from $122 and keeps a Buy rating on the shares. Despite management commentary about broad-based consumption strength from both existing and new clients, total, sales-led, and cloud revenue growth each decelerated by 2-3 percentage points and underperformed buyside expectations in fiscal Q2, which “left investors scratching their heads on what has already been a controversial stock,” the analyst says. The firm lowered its forecasts slightly, but sees potential acceleration in sales-led subscription growth and total revenue growth ahead, the analyst added.