Monness analyst Brian White has maintained their neutral stance on ESTC stock, giving a Hold rating today.
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Brian White has given his Hold rating due to a combination of factors surrounding Elastic’s current position and future prospects. Despite Elastic’s potential to capitalize on technological trends and innovations in AI, the company has faced challenges with execution and transitioning its software, which has led to inconsistent performance. The macroeconomic environment also poses risks that could impact Elastic’s growth trajectory.
Furthermore, while Elastic is expected to meet revenue and EPS estimates for 4Q:FY25, the anticipated growth rates represent a slowdown compared to previous periods. The company’s cloud growth is also projected to decelerate, which may affect overall performance. Additionally, Elastic’s recent acquisition and partnerships, such as those with Google Cloud, highlight its strategic efforts, but the success of these initiatives remains to be seen. These factors collectively contribute to the Hold rating as the company navigates both opportunities and challenges.