Elastic slides on forecast miss, PT cuts by multiple brokerages

Elastic

01/12/2022 17:25

(Updates)
    ** U.S.-listed shares of Elastic NV  ESTC.N  down ~8% at
$56.08 in afternoon trading
    ** At least 11 brokerages cut their PTs on the
Netherlands-based search engine software maker's stock after the
co's 2023 revenue forecast fell short of analysts' 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
    ** Elastic 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))