DA Davidson raised its price target on Elastic NV to $100 from $80 while maintaining a Neutral rating, citing strong demand for the company’s security solutions amid rising cyber threats.
The upgrade follows Elastic’s first-quarter fiscal 2027 results, which showed total revenue of $478.1 million, up 15% year-over-year in constant currency. Sales-led subscription revenue grew 17% to $398.5 million, with Elastic Cloud revenue noted by Canaccord Genuity to be growing in the 20% range.
After the earnings release, Elastic’s shares surged nearly 24% in after-hours trading to $98.22, bringing its six-month return to 61% and market capitalization to $10.2 billion. Gross margin stood at 76%, according to InvestingPro data.
Other analysts also revised targets: Piper Sandler set a $130 target, Cantor Fitzgerald and DA Davidson both at $100, Canaccord Genuity at $120, and Stifel at $107. Despite the positive outlook, DA Davidson retained its Neutral stance, citing a preference for more consistent execution before adopting a more bullish view. Needham maintained a Hold rating despite the earnings beat.
