Piper Sandler raises Elastic stock price target to $125 on cloud growth

Published 29/08/2025, 12:10
Piper Sandler raises Elastic stock price target to $125 on cloud growth

Investing.com - Piper Sandler raised its price target on Elastic NV. (NYSE:ESTC) to $125.00 from $120.00 on Friday, while maintaining an Overweight rating on the stock. The stock, currently trading at $87.79, has shown strong momentum with a 9.66% gain over the past week. According to InvestingPro data, analyst targets for ESTC range from $85 to $143, with a notably bullish consensus recommendation.

The cloud revenue for Elastic accelerated approximately 180 basis points to roughly 24% year-over-year growth, according to Piper Sandler’s research note.

The firm cited positive impacts from go-to-market changes, solid consumption trends, and price increases as factors that drove strong performance across both cloud and self-hosted offerings.

Following these results, Elastic raised its full-year guidance, which now implies approximately 13.5% growth for the company.

Piper Sandler expressed optimism about the stock’s future performance, noting that Elastic’s "conservative guidance framework" sets the stage for potential further upside.

In other recent news, Elastic NV reported impressive first-quarter fiscal 2026 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $0.60, significantly higher than the forecasted $0.42. Revenue also exceeded projections, reaching $415 million against an expected $397.16 million. This strong performance was further highlighted by a 5% price increase for cloud customers at the start of the quarter, which contributed to the revenue growth. Needham maintained its Hold rating on Elastic, noting the earnings exceeded revenue guidance but raised questions about the growth’s source. Meanwhile, DA Davidson assumed coverage on Elastic with a Neutral rating and increased its price target from $75.00 to $105.00. These developments reflect a positive market response to Elastic’s financial results and strategic pricing adjustments.

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