TD Cowen analyst Andrew Sherman reiterated a Hold rating on Elastic yesterday and set a price target of $105.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Sherman has given his Hold rating due to a combination of factors influencing Elastic’s financial performance. While the company showed a commendable increase in cloud revenues, surpassing expectations, this was partly driven by a recent price hike. The self-managed segment also contributed significantly to the revenue beat, marking the largest increase in three years, yet the overall billings fell short of market expectations.
Moreover, despite the stability in the Net Expansion Rate (NER) and a slight uptick in cloud revenues, the number of net new customers remained weak, particularly those using Elastic for Generative AI use-cases. The company’s valuation, trading at approximately 5.5 times the enterprise value to estimated sales for the calendar year 2026, appears to be fully priced. These mixed metrics, along with the anticipation of the next analyst day in October as a potential catalyst, underpin the decision to maintain a Hold rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $91.00 price target.