Street Calls of the Week
Investing.com - TD Cowen has maintained its Hold rating and $105.00 price target on Elastic NV (NYSE:ESTC) following the company’s user conference and analyst day in New York City. According to InvestingPro data, analyst targets range from $90 to $150, with the company currently trading at $81.55.
The firm noted that Elastic management outlined a medium-term framework that exceeded expectations, projecting 15%+ sales-led subscription growth combined with 5%+ generative AI tailwinds, targeting an overall growth profile exceeding 20%.
TD Cowen expressed comfort with the 15% base growth projection for Elastic’s core business, which forms the foundation of the company’s medium-term outlook.
The research firm, however, indicated more caution regarding the 5% growth contribution expected from artificial intelligence initiatives, which management projects will gradually increase over the medium term.
Elastic, known for its search and data analytics solutions, is positioning itself to capitalize on AI trends while maintaining its core subscription business growth.
In other recent news, Elastic NV has announced a $500 million share repurchase program, which has been approved by its Board of Directors. This program allows the company to buy back its outstanding ordinary shares, with no set expiration date. The buybacks may occur in the open market or through negotiated transactions, depending on various factors such as share price and market conditions. Additionally, William Blair has reiterated its Outperform rating for Elastic, highlighting the company’s strong positioning in the AI and search markets. The firm noted Elastic’s potential for increased market share in observability and security sectors. Cantor Fitzgerald has raised its price target for Elastic to $94, maintaining a Neutral rating, citing positive impressions from Elastic’s recent Analyst Day. Meanwhile, Goldman Sachs adjusted its price target to $100, also maintaining a Neutral rating, following discussions on Elastic’s mid-term growth framework and AI initiatives. These developments reflect Elastic’s strategic moves and the varying analyst perspectives on its market trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.