DA Davidson raised its price target for Elastic NV to $100 from $80 while maintaining a Neutral rating, citing increasing demand for the company’s security solutions amid a heightened threat landscape.
The upgrade came as Elastic’s shares surged nearly 24% in after-hours trading to $98.22, valuing the company at $10.2 billion. Elastic reported total revenue of $478.1 million in the first quarter of fiscal 2027, a 15% year-over-year increase in constant currency, driven by a 17% rise in sales-led subscription revenue to $398.5 million. The company also raised guidance above prior expectations following the beat.
DA Davidson acknowledged Elastic’s strong revenue growth and gross profit margin of 76% over the trailing twelve months but noted the stock appears slightly overvalued at current levels. The firm emphasized the need for more consistent execution before adopting a more positive stance.
Multiple peers also adjusted their price targets following Elastic’s results. Piper Sandler raised its target to $130, citing accelerated revenue and cloud performance. Cantor Fitzgerald set its target at $100, highlighting Elastic’s strategic position in AI-driven trends such as SIEM and Search. Canaccord Genuity increased its target to $120, pointing to high-20% growth in Elastic Cloud revenue despite a gross margin decline due to cloud mix and inference costs. Stifel raised its target to $107, attributing the move to strong sales-led subscription revenue growth and record SaaS revenue surpassing estimates. Needham maintained a Hold rating despite the earnings beat.
