Elastic price target lowered to $76 from $90 at Scotiabank

Scotiabank analyst Patrick Colville lowered the firm’s price target on Elastic (ESTC) to $76 from $90 and keeps a Sector Perform rating on the shares after fiscal Q2 top-line results the firm calls “a tad disappointing versus guidance and cloud peers.” While the firm acknowledges Elastic’s potential in security and observability, it is concerned that Palo Alto Networks’ (PANW) acquisition of Chronosphere could result in a more competitive environment in capturing the opportunity from Splunk, New Relic and Sumo Logic displacement, the analyst tells investors.