
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic is demonstrating a strong financial performance, with a significant portion of its revenue now derived from Elastic Cloud, which has grown to represent 49% of total revenue and achieved a growth rate of 22% in Q2. The company's consistent increase in both customer count, particularly among its $100k+ ACV customers, and its expectations for mid-teens revenue growth through FY26 underscore its solid market positioning and ability to enhance profitability. Additionally, the recent advancements in product offerings and a strategic focus on high-value customer segments position Elastic favorably within the evolving landscape of AI-driven search and data management solutions.
Bears say
The analysis of Elastic's financial performance reveals concerns regarding its incremental operating margins, which experienced a decline, leading to a disappointing reaction from investors reflected in a ~13% drop in share price. Despite achieving net revenue retention (NRR) of 112% for the sixth consecutive quarter and signing substantial deals, the company's ability to broaden the use of its modules and reliance on the ramp-up of its direct sales force presents inherent risks. Furthermore, a slowdown in the custom-developed AI applications market and delayed federal contract renewals due to external factors such as the US government shutdown contribute to a cautious outlook on Elastic's ongoing growth potential.
This aggregate rating is based on analysts' research of Elastic N.V and is not a guaranteed prediction by Public.com or investment advice.
Elastic N.V (ESTC) Analyst Forecast & Price Prediction
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