TD Cowen raised its price target on Elastic NV to $70 from $55 on Tuesday, maintaining a Hold rating as the firm expects a modest beat to the company's sales-led subscription growth guidance of 16%.
Analyst Andrew Sherman noted that while Elastic's Columnar Mode may support customer retention, high competition from OpenSearch and security vendors, coupled with limited AI interest, remains a concern. TD Cowen's partner checks indicated market caution on these fronts, though the firm does not expect the challenges to significantly alter Elastic's near-term trajectory.
Elastic's shares have gained 42% over the past month and are currently trading at $83.24, up 44% over the past six months. TD Cowen described the stock's setup as challenging, while InvestingPro's fair-value analysis suggests the shares remain undervalued despite being in overbought territory.
The price target adjustment follows a series of analyst actions on Elastic. Cantor Fitzgerald raised its target to $91 from $59 with a Neutral rating, citing multiple expansion. Stifel increased its target to $90 from $65 and maintained a Buy rating, focusing on sales-led subscription revenue growth. Morgan Stanley downgraded Elastic to Equalweight from Overweight and cut its target to $66, citing concerns about near-to-medium-term growth. Piper Sandler reiterated an Overweight rating with a target of $85 after meetings with company executives.
Elastic recently achieved the AI Security distinction in the Amazon Web Services Security Competency for its AI Security and Threat Detection and Response capabilities. The company provides enterprise search and data analytics solutions.
