Elastic NV. (ESTC) PT Lowered to $125 at Oppenheimer

Oppenheimer analyst Ittai Kidron lowered the price target on Elastic NV. (NYSE: ESTC) to $125.00 (from $150.00) while maintaining a Outperform rating.

The analyst commented: "Elastic reported disappointing 1Q results, largely behind a poorly managed sales segmentation change that drove weaker GTM execution and lower contracted commitments. The results raise questions regarding the decision to roll out the segmentation changes globally simultaneously (vs. in a phased manner) and why the initial FY25 outlook didn't appropriately account for
these risks. We come away disappointed, and our confidence is shaken. We are giving management the benefit of the doubt given: (1) the issues are largely self-inflicted and not competitive, and (2) an after-hours valuation (~5x CY25 EV/sales) that's tough to ignore. We're taking a "wait and see" approach, looking for noticeable improvement before reconsidering our rating. Adjusting our estimates for results/guidance and lowering PT to $125 from $150. Maintain Outperform."

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