Elastic price target raised at RBC Capital ahead of Q4 earnings
Investing.com | Author Davit Kirakosyan
Published May 31, 2023 05:57PM ET
Updated May 31, 2023 06:43PM ET
Elastic price target raised at RBC Capital ahead of Q4 earnings
Elastic (NYSE:ESTC) price target was raised to $84.00 from $71.00 at RBC Capital ahead of Q4/23 earnings announcement on Thursday after the market close. The firm reiterated its Outperform rating.
The firm anticipates a slight improvement in revenue, billings, and profitability, driven by investor focus on stabilizing growth and increasing margins.
Similar to the previous quarter, macroeconomic factors are expected to continue exerting pressure on cloud consumption trends as customers optimize their cloud usage. As such, the firm thinks fiscal 2024 revenue growth guidance is maintained, while profitability may see an upward trend.
Preliminary 2024 revenue guidance calls for mid-to-high-teens growth, indicating a deceleration compared to the +24% and +28% cc revenue growth guidance in 2023.
RBC Capital believes this conservative approach incorporates an appropriate level of caution, as estimates are likely to reach their lowest point in 2024, with the potential for a rebound in 2025.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.