Canaccord Genuity raises Elastic NV stock price target to $120 on growth outlook

Published 29/08/2025, 12:14
Canaccord Genuity raises Elastic NV stock price target to $120 on growth outlook

Investing.com - Canaccord Genuity raised its price target on Elastic NV (NYSE:ESTC) to $120.00 from $110.00 on Friday, while maintaining a Buy rating on the stock. The move aligns with broader analyst sentiment, as InvestingPro data shows 19 analysts have recently revised their earnings estimates upward, with price targets ranging from $85 to $143.

The price target increase follows an 18% jump in Elastic’s share price in after-market trading, suggesting investors are responding positively to the company’s outlook. The stock has already delivered a strong ~10% return over the past week, though it remains ~25% below its six-month high.

Canaccord Genuity views Elastic’s guidance as "conservative" and sees potential for the company to "meaningfully beat-and-raise throughout the year," according to its research note. This optimism is supported by Elastic’s solid fundamentals, including a healthy current ratio of 2.09 and revenue growth of 17.4% in the last twelve months. Get deeper insights into Elastic’s growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The new $120 price target represents approximately 7 times Elastic’s estimated calendar year 2026 revenues and 36 times enterprise value to free cash flow.

The research firm believes Elastic has the potential to grow free cash flow by more than 20% over the next few years, supported by the company’s exposure to generative AI workloads.

In other recent news, Elastic NV reported impressive first-quarter fiscal 2026 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $0.60, significantly above the forecasted $0.42. Revenue also exceeded projections, reaching $415 million compared to the expected $397.16 million. Piper Sandler raised its price target for Elastic to $125, citing a 24% year-over-year growth in cloud revenue, maintaining an Overweight rating. Meanwhile, Needham reiterated its Hold rating on Elastic, noting the company’s revenue exceeded guidance by $18.3 million but raised questions about growth sources. DA Davidson assumed coverage of Elastic with a Neutral rating, increasing its price target to $105 due to the strong quarterly results. The company implemented a 5% price increase for cloud customers, which was not included in previous guidance and contributed to the revenue beat. These developments highlight significant movements and analyst reactions surrounding Elastic NV.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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