RBC Capital raises Elastic stock price target to $125 on cloud acceleration

Published 29/08/2025, 13:38
RBC Capital raises Elastic stock price target to $125 on cloud acceleration

Investing.com - RBC Capital has raised its price target on Elastic NV. (NYSE:ESTC) to $125.00 from $106.00 while maintaining an Outperform rating on the stock. The new target represents significant upside from the current price of $87.79, with analyst targets ranging from $85 to $143. According to InvestingPro data, 19 analysts have recently revised their earnings expectations upward for the upcoming period.

The firm cited Elastic’s "strong start to the year" with performance exceeding expectations across all metrics, leading to raised fiscal year 2026 guidance amid stable macroeconomic conditions. The company’s strong performance is reflected in its robust gross profit margin of 75.3% and healthy current ratio of 2.09, indicating solid operational efficiency and financial stability.

RBC Capital highlighted solid traction in generative AI driving usage expansion, security displacements, and a small price increase as key factors behind the improved outlook.

Elastic has increased its fiscal year 2026 revenue midpoint guidance to reflect 14% growth (13% constant currency), up from previous projections of 12% and 11% respectively.

The firm believes there is potential for additional upside to estimates and multiple expansion for Elastic stock, supporting its decision to raise the price target while maintaining the Outperform rating.

In other recent news, Elastic NV reported strong first-quarter earnings, exceeding revenue expectations and raising its full-year revenue guidance by $18 million. This performance was primarily driven by the acceleration in its Elastic Cloud business and a 5% price increase. Analysts have responded positively to these results, with Stifel raising its price target to $134 and maintaining a Buy rating, while Guggenheim increased its target to $122, also keeping a Buy rating. Scotiabank joined in by raising its price target to $121, continuing to rate the stock as Sector Outperform. Cantor Fitzgerald maintained a Neutral rating with a price target of $92, acknowledging the company’s revenue beat. KeyBanc reiterated a Sector Weight rating, highlighting the company’s solid performance as artificial intelligence advances. Elastic’s management has also raised its fiscal year 2026 revenue guidance by 2 percentage points on a constant currency basis.

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