Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on ESTC stock, giving a Buy rating today.
Shrenik Kothari’s rating is based on several positive indicators for Elastic, particularly in its cloud revenue and billing segments. The company is expected to benefit from easier comparisons in these areas, alongside strong traction in its GenAI search capabilities and improved win rates in SIEM. Despite a slight decline in revenue estimates for the current year, the setup for the next fiscal year appears favorable, especially following a recent stock pullback, with Elastic trading at a relatively attractive valuation.
Additionally, the introduction of Serverless GA is anticipated to enhance usability and cost efficiency, potentially improving margins. While foreign exchange remains a variable, Elastic is positioned to surpass expectations in both its Cloud and Self-Managed segments, supported by AI-driven growth and a favorable market multiple. Partner checks indicate a positive trend in demand for AI-driven initiatives, further supporting the Buy rating due to the company’s solid growth trajectory and strategic positioning.
In another report released today, Rosenblatt Securities also maintained a Buy rating on the stock with a $130.00 price target.