Elastic (ESTC) Upgraded to Buy by Monness Crespi Analyst with $111 Price Target

Elastic (ESTC) has been upgraded to "Buy" by Monness Crespi analyst Brian White, with a price target of $111. The upgrade is based on White's analysis of promising market position and potential growth. The average one-year price target from 24 analysts is $111.89, indicating a 35.45% upside from the current price. ESTC's average brokerage recommendation is 1.9, indicating "Outperform" status.

Elastic (ESTC) has been upgraded to "Buy" by Monness Crespi analyst Brian White, with a price target of $111. This upgrade is based on White's analysis of Elastic's promising market position and potential growth. The average one-year price target from 24 analysts is $111.89, indicating a 35.45% upside from the current price. ESTC's average brokerage recommendation is 1.9, indicating an "Outperform" status [1].

KeyBanc initiated coverage of Elastic with a Sector Weight rating on June 9, recognizing the company's data and analytics platform's high flexibility and its ability to address various use cases such as search, observability, and security [1]. However, KeyBanc noted that Elastic's differentiation in observability and Security Information and Event Management/SIEM is not as strong.

For FQ4 2025, Elastic achieved a total revenue of $388 million, which marked a 16% year-over-year growth. Subscription revenue stood at $362 million, also showing 16% growth. Elastic Cloud revenue experienced a 23% growth. The company also saw customer growth, with customers spending over $1 million in ACV, growing by ~27% and adding 45 net new customers. For FQ1 2026, Elastic expects revenue to be between $396 and $398 million, indicating 14% year-over-year growth at the midpoint. For the full FY2026, revenue is projected to be between $1.655 and $1.67 billion, indicating 12% growth at the midpoint [1].

Despite the positive outlook, Elastic anticipates slower sequential cloud growth in FQ1 due to seasonal patterns and consumption headwinds [1]. The company is a search AI company that provides software platforms to run in hybrid, public, or private clouds and multi-cloud environments internationally.

While Elastic's potential as an investment is acknowledged, some analysts believe certain AI stocks offer greater upside potential and carry less downside risk. For those looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, a free report on the best short-term AI stock is available [1].

References:
[1] https://finance.yahoo.com/news/keybanc-initiates-elastic-estc-sector-191140246.html