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Investing.com - Oppenheimer raised its price target on Elastic NV. (NYSE:ESTC) to $119.00 from $100.00 on Friday, while maintaining an Outperform rating on the stock. Currently trading at $87.79, Elastic has received strong analyst support, with analyst targets ranging from $85 to $143, according to InvestingPro data.
The research firm cited Elastic’s "excellent" first quarter fiscal year 2026 results, which showed broad-based strength and consumption across all regions and product areas, including observability, security, and search.
Multiple factors contributed to the company’s strong performance, including sustained sales execution, a better-than-expected macro environment, steady expansion with a 112% net expansion rate, pricing gains of approximately 5% implemented in May, competitive displacements, and emerging AI tailwinds.
Oppenheimer noted that Elastic now has 2,200+ paying AI customers, including 330+ spending $100,000+ annually, and management expressed good near-term visibility and confidence in sustaining strong execution, as reflected in raised FY26 guidance.
The firm believes AI and vector search are becoming levers to drive customer engagement through more proof of concepts, RFPs, and competitive wins, though the top-line impact is still very early and small, creating what Oppenheimer sees as a multi-year growth opportunity that can impact all parts of Elastic’s business.
In other recent news, Elastic NV reported strong financial results, significantly exceeding revenue expectations. The company’s cloud revenues grew by $14 million quarter-over-quarter, surpassing both buy-side expectations and Street estimates by $5 million. Self-managed revenue also outperformed expectations by $11 million, contributing to the overall revenue success. Following these results, Elastic raised its full-year revenue estimate by $18 million, which includes a 5% price increase. Analysts have responded positively, with Stifel raising its price target to $134, citing strong first-quarter earnings and robust guidance for the upcoming fiscal year. RBC Capital also increased its price target to $125, noting Elastic’s strong start to the year and improved fiscal year 2026 guidance. Guggenheim raised its price target to $122, highlighting the company’s significant revenue and profit outperformance. Meanwhile, TD Cowen adjusted its price target to $105, maintaining a Hold rating, while Cantor Fitzgerald reiterated a Neutral rating with a price target of $92. These developments reflect a positive outlook for Elastic amid stable macroeconomic conditions.
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