DA Davidson raised its price target on Elastic NV to $80 from $60 on Tuesday, maintaining a Neutral rating while citing improving usage trends and sustained customer commitments.
The stock was trading at $79.92 ahead of Elastic's scheduled first-quarter fiscal 2027 earnings release after the market close on August 27. DA Davidson's upgrade follows a 32% monthly gain for Elastic shares, which now trade near the new target.
InvestingPro estimates Elastic's fair value at $93.48, while other firms have adjusted their outlooks. Rosenblatt set a $83 target with a Buy rating, TD Cowen raised its target to $70 with a Hold rating, and Cantor Fitzgerald lifted its target to $91 with a Neutral rating. Stifel assigned a $90 target with a Buy rating, while Morgan Stanley reduced its target to $66 and downgraded the stock to Equalweight from Overweight.
DA Davidson highlighted strong consumption demand from peers and favorable usage trends as key drivers behind the upgrade. The firm noted that guidance already reflects growth acceleration, which may limit further upside. Additional considerations include the recent departure of product leaders and ongoing corporate restructuring, which introduce execution risks despite the positive outlook.
Elastic's gross profit margins stand at 76% according to InvestingPro data, and the company holds more cash than debt on its balance sheet. Analysts project Elastic Cloud growth of 19% and expect sales-led subscription growth of 16% in the near term.
