In a report released yesterday, Koji Ikeda from Bank of America Securities maintained a Hold rating on Elastic (ESTC – Research Report), with a price target of $104.00.
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Koji Ikeda’s rating is based on a combination of factors surrounding Elastic’s recent acquisition of Keep Alerting, an open-source AIOps vendor. This acquisition enhances Elastic’s AIOps capabilities, potentially increasing the platform’s value for site reliability engineers and operations teams. However, despite the positive technological differentiation, Ikeda sees a balanced risk-reward scenario for Elastic’s stock due to execution risks.
Additionally, the lack of financial details about the acquisition and the anticipation of further strategic insights during the upcoming F4Q25 earnings call contribute to the Hold rating. The acquisition appears to focus on talent and technology, with notable investors linked to the company, including Elastic’s founder. These elements suggest a cautious approach until more information is available, justifying the Neutral stance with a price objective of $104.
ESTC’s price has also changed slightly for the past six months – from $85.980 to $84.520, which is a -1.70% drop .