Elastic looks well-situated to capitalize on the generative AI craze overtaking Wall Street, according to Bank of America. On the heels of strong fiscal first-quarter print Thursday, analyst Koji Ikeda reiterated his buy rating and $78 price target on the software maker, citing growing AI monetization opportunities.
mountain Elastic shares year to date Boosting Ikeda's confidence in Elastic's AI value proposition is positive commentary on deal activity and signs that hundreds of customers are already using its AI-focused products. He expects an acceleration in the company's revenue growth trajectory in the second half of the 2024 fiscal year. "We believe the business has the ability to grow at an above software industry profile for the foreseeable future," he said.