TD Cowen upgraded its price target on Elastic NV to $70 from $55 on Tuesday, maintaining a Hold rating as the company’s sales-led subscription growth outlook slightly exceeds guidance.
The firm’s analyst Andrew Sherman expects Elastic to perform marginally above its 16% subscription growth forecast, which could support upward revisions to fiscal-year estimates. The stock was last trading at $83.24, up 42% over the past month and 44% over the last six months.
Other analysts have also adjusted their targets. Cantor Fitzgerald raised its target to $91 from $59 with a Neutral rating, citing multiple expansion, while Stifel lifted its target to $90 from $65 with a Buy rating. Morgan Stanley, however, reduced its target to $66 and downgraded the stock to Equalweight from Overweight. Piper Sandler set a target of $85 with an Overweight rating.
Sherman noted that Elastic’s Columnar Mode could aid customer retention but requires architectural changes, and TD Cowen does not view it as a transformative shift. The firm also highlighted market caution due to competition from OpenSearch and security vendors, as well as limited interest in artificial intelligence.
InvestingPro data indicated Elastic’s stock was in overbought territory, though its fair value analysis suggested the shares remained undervalued. The company recently earned the AI Security distinction under Amazon Web Services’ security competency, reflecting its capabilities in AI security, threat detection, and response. Discussions with executives also addressed workforce reductions, growth acceleration, and product initiatives.
