Elastic price target lowered to $90 from $111 at BofA

BofA lowered the firm’s price target on Elastic (ESTC) to $90 from $111 and keeps a Neutral rating on the shares after the company reported “mixed” fiscal Q2 results. While the FY26 guidance midpoints were raised above the Q2 beats, key growth metrics such as sales-led subscription revenue growth decelerated, which is “a notable contrast to the strong demand commentary,” the analyst tells investors. On the back of its investor day held a month ago, where management’s tone was bullish, the firm thinks the results are “raising more questions than answers” and it is applying a lower multiple for decelerating key metrics growth.