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On Monday, Truist Securities enhanced its outlook on Elastic NV (NYSE: NYSE:ESTC) shares, raising the price target from $135.00 to $145.00, while reaffirming a Buy rating on the stock. The adjustment follows Elastic’s third-quarter results for fiscal year 2025, which surpassed expectations, showcasing the company’s improved execution. The company, currently valued at $11.75 billion, maintains strong fundamentals with a healthy gross margin of 74.23% and impressive revenue growth of 17.95% over the last twelve months.
Elastic witnessed a surge in demand for its search capabilities and GenAI use cases. This upswing was particularly evident in cloud consumption among its larger customers. The market has responded positively to this momentum, with the stock delivering a remarkable 58.85% return over the past six months and a recent 10.91% surge in the past week. Elastic’s management has acknowledged a return to the execution levels seen before the first quarter and suggested that recent strategic changes aimed at deepening customer relationships could lead to potential gains.
The company has also adjusted its fiscal year outlook upwards, although it remains cautious. Truist Securities’ analyst noted that management’s willingness to increase investment in the GenAI opportunity throughout fiscal year 2026 suggests there could be additional positive developments in the fourth quarter. Consequently, the firm has updated its estimates and price target to reflect these factors, maintaining a positive stance on Elastic NV shares. For deeper insights into Elastic’s financial health and growth potential, check out the comprehensive analysis available on InvestingPro, where you’ll find 10+ additional exclusive ProTips and detailed metrics.
In other recent news, Elastic NV reported earnings and revenue results that exceeded expectations, with several analysts adjusting their price targets accordingly. UBS raised its price target to $148, highlighting a strong third-quarter performance marked by a 26% growth in Cloud revenue and a 3.5% total revenue beat. Similarly, RBC Capital Markets increased its target to $140, citing robust consumption trends and a return to strong sales execution levels. TD Cowen raised its price target to $125, noting Elastic’s surpassing of cloud revenue predictions due to increased usage by large customers, although they maintained a Hold rating.
Stifel adjusted its price target downward to $38 but retained a Buy rating, acknowledging Elastic’s revenue exceeding expectations and improved go-to-market execution. DA Davidson maintained a Neutral rating with a $115 target, recognizing the company’s operational efficiency and improved margins. The appointment of Navam Welihinda as the new Chief Financial Officer was also noted as a significant development for the company. Analysts generally pointed to Elastic’s advancements in generative AI as a positive factor for future growth. These recent developments reflect Elastic’s ongoing recovery and strategic positioning in the market.
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