Rosenblatt Securities reiterated its buy recommendation and $83 price target for Elastic NV on Wednesday, ahead of the company’s first-quarter 2027 earnings release scheduled for after market close on August 27.
The firm maintained its estimates for fiscal years 2027 and 2028, expecting results to meet or slightly exceed current projections. Elastic’s Cloud segment is projected to grow 19% year-over-year, a slight deceleration from the 20% growth recorded in the prior quarter. The company beat earnings expectations by 1% in the previous quarter.
Multiple analysts revised their targets following the release of the June 25 workforce reduction announcement, which included a 7% reduction in headcount. Stifel raised its target to $90, citing Elastic’s focus on sales-led subscription revenue growth, including SaaS and self-hosted offerings. Cantor Fitzgerald increased its target to $91, citing a favorable risk-reward profile and potential multiple expansion. TD Cowen adjusted its target upward to $70, anticipating a modest beat in subscription growth projections.
Morgan Stanley downgraded Elastic from overweight to equalweight, citing concerns over short- and medium-term growth prospects. InvestingPro’s AI-powered ProPicks model flagged Elastic as a high-conviction pick, citing historical outperformance of similar selections, including Siemens Energy (+231.5%) and Sandisk (+189%).
Elastic’s gross profit margin stands at 76%, and the company holds more cash than debt on its balance sheet, according to InvestingPro. The company also earned the AI Security distinction under Amazon Web Services’ Security Competency, highlighting its capabilities in AI security and threat detection and response.
Analysts point to Elastic’s positioning in log management tool consolidation, modernization of legacy SIEM systems, and the development of new AI applications and autonomous agents leveraging the Elastic Search Relevance Engine with vector database capabilities as key growth drivers.
