11:48 AM EDT, 05/30/2025 (MT Newswires) -- Elastic (ESTC), PagerDuty ( PD ) and UiPath ( PATH ) face slow new-business growth and revenue erosion amid flat demand for core products, sales-execution headwinds and cautious customer spending, despite improvements in operational profitability and margins, Morgan Stanley said Friday in a report.

Elastic is experiencing cloud growth deceleration and a cautious fiscal year 2026 outlook, driven by conservative assumptions from a new chief financial officer, following solid Q4 results, the report said.

Still, the company's AI Search momentum remains intact with growing adoption and strong monetization potential heading into fiscal 2027, the report said.

Morgan Stanley cut its price target on Elastic's stock to $115 from $120 and maintained its overweight rating.

PagerDuty's ( PD ) profitability and cash flow strength are countered by new business growth challenges tied to sales execution issues, the report said.

Morgan Stanley rates PagerDuty ( PD ) equal weight with a price target of $17.

UiPath ( PATH ) continues to face challenges in generating new business with net new annual recurring revenue declining for six straight quarters, Morgan Stanley said. While early product momentum may support future growth, near-term trends remain under pressure, the report said.

Morgan Stanley rates UiPath ( PATH ) equal weight with a price target of $12.

Elastic and PagerDuty ( PD ) shares both fell 11% in recent trading Friday, and UiPath ( PATH ) rose 0.6%.

Price: 82.34, Change: -9.70, Percent Change: -10.53