Needham analyst Mike Cikos has maintained their neutral stance on ESTC stock, giving a Hold rating yesterday.
Mike Cikos has given his Hold rating due to a combination of factors that reflect both positive developments and areas of uncertainty for Elastic. The company has shown strong performance in the recent quarter, with revenue exceeding expectations, largely driven by the robust growth of Elastic Cloud and increased consumption from larger clients. Additionally, the Search segment has experienced significant year-over-year acceleration, particularly as it supports AI applications through RAG architectures.
Despite these encouraging signs, Cikos remains cautious and opts for a Hold rating as he awaits further clarity. While Elastic has made strides in innovation and has benefited from industry mergers and acquisitions, as well as changes in its sales organization, there is a need for more consistent evidence of these strategies translating into long-term growth. Therefore, the Hold rating reflects a balanced view, acknowledging current achievements while recognizing the need for additional data to support a more optimistic outlook.
According to TipRanks, Cikos is a 5-star analyst with an average return of 11.6% and a 52.49% success rate. Cikos covers the Technology sector, focusing on stocks such as Dynatrace, Okta, and Tenable Holdings.
In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a $125.00 price target.