Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on ESTC stock, giving a Buy rating on October 6.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Elastic’s strong market position and growth potential. The company’s strategic focus on AI, search, observability, and security positions it uniquely in the market, with recent customer wins and partnerships with major cloud providers like AWS and Microsoft reinforcing this stance.
Elastic’s financial outlook is promising, with management targeting a ‘Rule-of-40-plus’ framework, aiming for over 20% subscription revenue growth and operating margins. The company’s innovative product offerings, such as Agent Builder and Inference Service, are expanding its reach and enhancing its capabilities in AI-driven solutions. Additionally, Elastic’s updated FY26 guidance reflects improved revenue expectations, driven by increased demand visibility and customer commitments, despite broader economic uncertainties. This combination of strategic positioning, financial strength, and innovative product development underpins Kothari’s positive outlook on Elastic’s stock.
In another report released on October 6, RBC Capital also maintained a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ESTC in relation to earlier this year.