Elastic stock price target raised to $94 from $92 by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on Elastic NV (NYSE:ESTC) to $94.00 from $92.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, Elastic currently trades at a Price/Book multiple of 8.9x, with analysts setting targets ranging from $90 to $150.

The price target adjustment follows Elastic’s Analyst Day, which was held alongside its Elastic{ON} User Event in New York City. Cantor Fitzgerald noted it came away "incrementally more positive" after the event, citing additional disclosure on sales-led growth and commentary about increased commitments since Elastic last provided guidance on August 29, 2025. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.09, indicating robust liquidity.

Elastic shared that 62% of its fiscal year 2025 net expansion was driven by AI customers. The company positioned itself as providing "the context for AI workloads" based on its background as a leader in search and expanding these capabilities to broader observability and security markets.

The firm’s medium-term financial framework indicates growth reaching over 20% by fiscal year 2029, up from approximately 14% expected in fiscal year 2026. This growth projection includes 5 percentage points of AI-driven acceleration and 15% growth in core business.

Elastic also announced a $500 million share repurchase program, with 50% to be completed in fiscal year 2026. Following these announcements, Elastic shares rose approximately 10% in after-hours trading.

In other recent news, Elastic has announced a $500 million share repurchase program, which has no expiration date and allows the company to buy back its outstanding ordinary shares. This move was approved by the company’s Board of Directors and is dependent on factors such as share price and market conditions. Additionally, Elastic has launched a GPU-accelerated inference service to improve its AI workflows, utilizing NVIDIA GPUs for enhanced performance in semantic and vector searches. In another strategic development, Elastic has acquired Jina AI to bolster its AI search capabilities, focusing on open-source multimodal and multilingual embeddings. The acquisition is expected to enhance Elastic’s position in the search AI market, although the financial terms were not disclosed.

Furthermore, Goldman Sachs has adjusted its price target for Elastic to $100, maintaining a Neutral rating. This adjustment comes after Elastic’s 2025 Investor Day, where the company outlined a mid-term framework aiming for a "Rule of 40+" performance metric. This includes a projected 15%+ core growth rate and an additional 5%+ growth from generative AI initiatives, with operating margins exceeding 20%. These developments reflect Elastic’s ongoing efforts to strengthen its market position and growth outlook.

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