Elastic share slide offers good entry point - analysts

Elastic

01/12/2022 13:30

** U.S.-listed shares of Elastic NV  ESTC.N  down 14% to
$52.54 pre-market
    ** At least 10 brokerages cut PT on the stock after
company's 2023 revenue forecast missed estimates and it
announced job cuts and a cost-optimization plan
    ** Piper Sandler says the recent move in the shares is
likely overdone, and they "offer value at current levels";
lowers PT to $70 from $95, maintains "overweight" rating
    ** J.P.Morgan says while it expects ESTC's plan to drive
margin expansion, the stock will be "in a penalty box" in the
near-term as investors monitor execution
    ** JPM lowers PT to $73 from $100
    ** The Netherlands-based search engine software co said on
Wednesday it expected fiscal 2023 revenue between $1.067 bln and
$1.073 bln, below analysts' estimates of $1.08 bln - Refinitiv
data
    ** Co also guided Q3 revenue below estimates
    ** ESTC is reducing workforce by 13% and implementing
certain facilities-related cost optimization action
    ** Of the 20 analysts covering the stock, 14 rate "buy" or
higher, 5 rate "hold" and one rates "sell"; median PT $82.50
    ** Up to the most recent close, stock down ~50% YTD   
 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))