DA Davidson assumes coverage on Elastic stock with Neutral rating

Published 29/08/2025, 06:36
DA Davidson assumes coverage on Elastic stock with Neutral rating

Investing.com - DA Davidson has assumed coverage on Elastic NV. (NYSE:ESTC) with a Neutral rating and a price target of $105.00, up from the previous target of $75.00. According to InvestingPro data, analyst targets for ESTC range from $75 to $143, with the stock currently showing a ’Good’ financial health score.

The firm’s coverage transition follows Elastic’s strong first-quarter fiscal 2026 results, which showed accelerating revenue growth that exceeded market expectations.

Elastic also provided better-than-expected guidance, which sent shares higher in after-hours trading following the announcement.

DA Davidson noted increasing demand for Elastic’s AI Search functionality as AI and Agentic applications are developed, while security consolidation trends were highlighted as notable during the quarter.

The firm acknowledged that price increases contributed to Elastic’s outperformance, but also observed that sales execution continues to improve as the company expands its relationships with larger enterprise customers.

In other recent news, Elastic NV reported its first-quarter fiscal 2026 earnings, which exceeded Wall Street expectations. The company achieved an earnings per share (EPS) of $0.60, surpassing the projected $0.42. Revenue also outperformed forecasts, reaching $415 million compared to the anticipated $397.16 million. These results indicate a strong performance for Elastic NV, reflecting positively on its financial health. Investors showed confidence in the company’s robust results. The earnings announcement followed with a positive reaction from the market. Elastic NV’s recent performance suggests continued investor interest and attention.

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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