Elastic stock rating reiterated at Neutral by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald maintained its Neutral rating on Elastic NV (NYSE:ESTC) with a price target of $92.00 following the company’s fiscal first-quarter earnings report. According to InvestingPro data, 19 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $85 to $143.

Elastic beat revenue expectations, exceeding the high end of its guidance by $18 million, primarily driven by acceleration in its Elastic Cloud business. The company subsequently raised its full-year revenue estimate by $18 million, which incorporated the effects of a roughly 5% price increase. The company maintains strong financial health with a current ratio of 2.09 and holds more cash than debt on its balance sheet.

Despite the headline beat, Cantor Fitzgerald characterized it as "low quality," noting that quarter-over-quarter dollar additions on annualized days adjusted cloud revenue, excluding month-over-month customers, were lower than the previous two fiscal first quarters.

The firm cited "increased competitive pressures" as a key factor in maintaining its Neutral stance on the stock, which traded at approximately 5 times calendar 2026 estimated revenues in after-hours trading.

Cantor Fitzgerald suggested Elastic shares "could be a source of funds" following the after-hours price movement, indicating the stock now has "a more balanced risk/reward profile" compared to its one-year average valuation multiple of 5x. Discover more insights and 8 additional ProTips for Elastic NV with an InvestingPro subscription, including detailed valuation metrics and growth forecasts.

In other recent news, Elastic NV reported strong fiscal first-quarter results that exceeded expectations, prompting several analyst firms to adjust their outlooks. Guggenheim raised its price target for Elastic to $122, citing the company’s significant outperformance in revenue and profit, along with guidance above Street expectations. Similarly, Scotiabank increased its price target to $121 and noted a 5% price increase implemented by Elastic, contributing to the positive results. Canaccord Genuity also raised its target to $120, reflecting optimism about Elastic’s growth outlook. Piper Sandler set a new price target of $125, highlighting accelerated cloud revenue growth of approximately 24% year-over-year. KeyBanc maintained its Sector Weight rating, acknowledging the company’s strong performance and increased fiscal year 2026 revenue guidance. These developments underscore the positive reception from the investment community following Elastic’s robust quarterly performance and guidance updates.

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