Elastic stock rating upgraded to buy at Monness Crespi Hardt

Investing.com - Monness, Crespi, Hardt upgraded Elastic N.V. (NYSE:ESTC) from neutral to buy on Friday, setting a price target of $111.00 for the software company. According to InvestingPro data, Elastic maintains a strong financial position with more cash than debt and a healthy current ratio of 1.92x.

The research firm cited Elastic’s significant underperformance compared to its universe of stocks, noting the company’s shares have declined 12% in 2024 and fallen an additional 17% this year while AI-fueled tech stocks have climbed to new all-time highs in 2025.

Monness Crespi Hardt pointed out that Elastic currently sits 56% below its peak reached in late 2021, resulting in what it describes as a "depressed enterprise-value-to-revenue multiple" compared to both consumption-based software groups and the broader software universe.

The firm stated it finds Elastic’s current valuation "compelling" at present levels and believes the company is well-positioned to benefit from the generative AI movement.

Elastic stock has experienced a challenging period while other technology companies have surged, with the firm’s new $111 price target suggesting significant potential upside from the current share price of $82.61.

In other recent news, Elastic NV has seen several adjustments to its stock price target following its latest financial disclosures. RBC Capital Markets revised its price target for Elastic to $115, maintaining an Outperform rating, while acknowledging macroeconomic pressures affecting sales cycles. Similarly, Citi lowered its target to $125, citing mixed fiscal fourth-quarter results and a conservative outlook influenced by the new CFO’s commentary. Despite these adjustments, Citi analysts noted stable net revenue retention and billings growth.

TD Cowen also reduced its target to $90 due to a shortfall in cloud revenue, maintaining a Hold rating while expressing caution about near-term prospects. DA Davidson kept its price target at $75, maintaining a Neutral rating, despite Elastic’s revenue growth surpassing expectations. Meanwhile, Canaccord Genuity adjusted its target to $110, maintaining a Buy rating and highlighting Elastic’s potential in generative artificial intelligence.

These developments reflect a range of analyst perspectives on Elastic’s financial performance and future outlook. While some firms express optimism about Elastic’s strategic initiatives, others remain cautious due to external economic factors and specific revenue shortfalls. Elastic’s management has indicated a positive outlook on its business pipeline, particularly in leveraging generative AI technology for growth.

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