Elastic stock price target raised to $125 from $95 at UBS on strong Q1

Published 29/08/2025, 14:42
Elastic stock price target raised to $125 from $95 at UBS on strong Q1

Investing.com - UBS raised its price target on Elastic NV. (NYSE:ESTC) to $125.00 from $95.00 on Friday, maintaining a Buy rating following the company’s strong first-quarter results. According to InvestingPro data, the stock currently trades at $85.79, with analysts’ targets ranging from $85 to $143, reflecting strong market confidence in the company’s growth potential.

Elastic shares jumped 18% in after-hours trading after reporting total revenue growth of 20%, significantly exceeding investor expectations of 17% and beating the high end of guidance by 4.3% - the company’s largest beat in over three years. The company maintains a healthy gross profit margin of 75.29% and has shown consistent revenue growth of 17.42% over the last twelve months.

The strong performance was particularly notable as the stock had already gained 13% over the previous two days following positive results from MongoDB and Snowflake, which had modestly raised market expectations. InvestingPro analysis reveals several positive indicators, including 19 analysts revising their earnings estimates upward for the upcoming period. Get access to more exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report.

UBS views Elastic’s updated fiscal year 2026 revenue growth guidance of 14% (up from 13% previously) as "increasingly conservative." The firm calculates that if quarterly revenue additions match last year’s pattern through the remainder of the fiscal year, Elastic could potentially achieve 18% growth for FY26.

Trading at approximately 6 times UBS’s calendar year 2026 estimated revenue with high-teens growth potential, the firm maintains its positive outlook on Elastic stock.

In other recent news, Elastic NV has reported strong first-quarter fiscal year 2026 results, significantly impacting its revenue and earnings outlook. The company’s performance exceeded expectations, leading to multiple analyst firms adjusting their price targets. Stifel increased its price target to $134, noting the company’s robust earnings and healthy guidance for the upcoming quarters. RBC Capital also raised its target to $125, citing a strong start to the year and increased fiscal guidance. Oppenheimer adjusted its target to $119, acknowledging the broad-based strength across Elastic’s product areas. TD Cowen increased its target to $105, highlighting the company’s cloud revenue growth that surpassed both buy-side expectations and Street estimates. Cantor Fitzgerald maintained a Neutral rating with a $92 target, recognizing the revenue beat driven by acceleration in Elastic Cloud and a subsequent full-year revenue estimate increase. These developments reflect Elastic’s strong market performance and positive reception from analysts.

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