Elastic price target lowered to $70 from $80 at RBC Capital

RBC Capital lowered the firm’s price target on Elastic (ESTC) to $70 from $80 but keeps an Outperform rating on the shares after the firm’s meetings with the company’s management team. The firm is reducing its price target on peer multiple compression, however its takeaway is positive about Elastic’s position in the infrastructure stack within the AI era, the analyst tells investors in a research note. While investor questions remain around SaaS app AI disruption, RBC believes infrastructure vendors such as Elastic that are close to data, offer flexible deployment, as well as consumption pricing are well positioned for AI, the firm added.