Stifel raises Elastic NV stock price target to $134 on strong earnings

Investing.com - Stifel raised its price target on Elastic NV (NYSE:ESTC) to $134.00 from $112.00 on Friday, while maintaining a Buy rating following the company’s first-quarter earnings report. According to InvestingPro data, 19 analysts have recently revised their earnings estimates upward, with price targets ranging from $85 to $143.

The stock jumped approximately 15% in after-hours trading after Elastic delivered strong first-quarter results and provided healthy guidance for both the second quarter and fiscal year 2026. The company has demonstrated robust financial health with a 75.29% gross margin and impressive revenue growth of 17.42% over the last twelve months.

Growth accelerated quarter-over-quarter for both Elastic’s Cloud and self-managed businesses, driven by solid demand and a modest benefit from a recent price increase. The company’s margins exceeded expectations by 400 basis points, with a minor incremental benefit from a hyperscaler credit.

Elastic reported durable Cloud consumption trends during the quarter, with its U.S. Federal business showing signs of improvement compared to the previous quarter. The company is experiencing accelerating generative AI adoption within its installed base and growing success in larger consolidation deals.

Stifel noted that Elastic’s security business is gaining traction with competitive displacements, which accounted for one-third of new and expansion deals during the quarter. The company maintains a strong liquidity position with a current ratio of 2.09, indicating robust ability to meet short-term obligations.

In other recent news, Elastic NV has reported strong fiscal first-quarter earnings, surpassing revenue expectations by $18 million. This outperformance led the company to raise its full-year revenue estimate by the same amount, largely due to growth in its Elastic Cloud business and a 5% price increase. Guggenheim highlighted Elastic’s significant revenue and profit outperformance, raising its price target to $122 while maintaining a Buy rating, as the company guided its fiscal second quarter above Street expectations.

Scotiabank also raised its price target to $121, citing strong quarterly results and the impact of the price increase. Canaccord Genuity followed suit, increasing its price target to $120 and noting a positive growth outlook. Meanwhile, Cantor Fitzgerald reiterated a Neutral rating with a price target of $92, acknowledging the company’s solid performance. KeyBanc maintained its Sector Weight rating, recognizing the company’s strong results and the acceleration of consumption software. These developments reflect a positive response from analysts to Elastic’s recent financial performance.

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