Elastic price target lowered to $85 from $110 at Piper Sandler

Piper Sandler lowered the firm’s price target on Elastic (ESTC) to $85 from $110 and keeps an Overweight rating on the shares. The firm notes Q3 results brought improved upside, a guidance raise in excess of the beat and encouraging momentum on large deals alongside an uptick in AI adoption among large customers. This all came positively for Piper, keeping the firm encouraged by the company’s ability to sustain 20%-plus sales-led subscription growth. Shares were trading lower after hours as many scrutinize a deceleration in cloud growth in an environment where many consumption peers are accelerating, a view the firm believes is overly pessimistic.