Cantor Fitzgerald increased its price target for Elastic NV to $91 from $59 while maintaining a Neutral rating, citing a fourfold expansion in the company’s enterprise value-to-sales multiple for fiscal 2027.
The adjustment follows Elastic’s recent restructuring, which includes a 7% workforce reduction and the departure of Chief Product Officer Ken Exner. Despite these changes, the firm highlighted improvements in customer commitments, backlog growth, and momentum in the federal sector as key drivers behind its revised outlook. Cantor Fitzgerald also pointed to accelerating AI-driven search demand as a catalyst for reacceleration in second-half software licensing sales.
Elastic’s shares, which traded at $85.94 on Aug. 21, closed at the same level with a marginal gain of 0.05%. Pre-market activity showed a slight decline of 0.04% to $85.90. The stock’s proximity to the new price target underscores the valuation sensitivity to the multiple expansion.
Other analysts have also adjusted their targets. Stifel raised its target to $90 while maintaining a Buy rating, while Piper Sandler reiterated its $85 target with an Overweight rating. Morgan Stanley reduced its target to $66 and downgraded the stock to Equalweight from Overweight, and Rosenblatt cut its target to $83 but kept its Buy rating.
Elastic’s financial metrics remain robust, with a gross margin of 76% and trailing twelve-month revenue growth of 17%, according to InvestingPro data. The company’s upcoming fiscal first-quarter 2027 earnings release, scheduled for Aug. 27, will provide further insight into its operational trajectory amid shifting analyst expectations.
The firm’s recognition in Amazon Web Services’ AI Security Competency further underscores its positioning in artificial intelligence-driven security and threat detection solutions. However, Cantor Fitzgerald noted ongoing mixed checks in security and deal-closing processes, as well as uncertainties surrounding the pacing of fiscal 2027 revenue growth, which contributed to its Neutral stance.
