Citigroup Increases Elastic (NYSE:ESTC) Price Target to $104.00

Key Points

• Citigroup raised its price target on Elastic from $95 to $104 and kept a “buy” rating, implying about 62.8% upside from the prior close.
• Elastic’s recent earnings beat expectations, reporting adjusted EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with sales up 16% year over year.
• The company also lifted its guidance for fiscal 2027 and first-quarter fiscal 2027, while several other analysts remained constructive despite some lowering their target prices.

Elastic (NYSE:ESTC - Get Free Report) had its price objective upped by equities researchers at Citigroup from $95.00 to $104.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price target suggests a potential upside of 62.76% from the stock's previous close.

Several other equities analysts also recently issued reports on the stock. Canaccord Genuity Group decreased their price objective on shares of Elastic from $115.00 to $90.00 and set a "buy" rating on the stock in a report on Friday, February 27th. William Blair assumed coverage on shares of Elastic in a research note on Friday, May 22nd. They issued an "outperform" rating on the stock. DA Davidson set a $60.00 price target on shares of Elastic in a research note on Friday. Stifel Nicolaus set a $65.00 target price on shares of Elastic in a research note on Friday. Finally, Cantor Fitzgerald reduced their target price on shares of Elastic from $66.00 to $59.00 and set a "neutral" rating on the stock in a research note on Tuesday. Eighteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Elastic has an average rating of "Moderate Buy" and an average target price of $81.44.

Elastic Price Performance

Shares of ESTC traded up $6.29 during mid-day trading on Friday, reaching $63.90. 3,959,012 shares of the stock traded hands, compared to its average volume of 2,053,171. The firm has a fifty day moving average price of $50.20 and a 200 day moving average price of $62.82. The company has a market cap of $6.61 billion, a price-to-earnings ratio of -79.66, a price-to-earnings-growth ratio of 101.99 and a beta of 0.88. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.72. Elastic has a 1 year low of $42.05 and a 1 year high of $96.07.

Elastic (NYSE:ESTC - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.61 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.05. The firm had revenue of $450.68 million during the quarter, compared to analyst estimates of $446.66 million. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.34%. The business's revenue for the quarter was up 16.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.47 EPS. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. As a group, equities research analysts predict that Elastic will post 0.04 earnings per share for the current year.

Insider Transactions at Elastic

In other Elastic news, insider Carolyn Herzog sold 3,989 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $208,544.92. Following the transaction, the insider directly owned 85,335 shares of the company's stock, valued at $4,461,313.80. This represents a 4.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CRO Mark Eugene Dodds sold 3,723 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $52.28, for a total value of $194,638.44. Following the completion of the transaction, the executive directly owned 152,563 shares in the company, valued at approximately $7,975,993.64. This represents a 2.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 38,188 shares of company stock worth $1,996,469. 12.70% of the stock is currently owned by company insiders.

Institutional Trading of Elastic

Several large investors have recently modified their holdings of ESTC. AQR Capital Management LLC grew its holdings in shares of Elastic by 153.4% during the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company's stock worth $569,201,000 after purchasing an additional 4,567,720 shares in the last quarter. First Trust Advisors LP lifted its position in shares of Elastic by 516.1% during the 1st quarter. First Trust Advisors LP now owns 2,627,636 shares of the company's stock worth $131,356,000 after buying an additional 2,201,140 shares during the last quarter. Pictet Asset Management Holding SA lifted its position in shares of Elastic by 43.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company's stock worth $324,550,000 after buying an additional 1,958,219 shares during the last quarter. FIL Ltd lifted its position in shares of Elastic by 36.9% during the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company's stock worth $273,753,000 after buying an additional 977,578 shares during the last quarter. Finally, Alyeska Investment Group L.P. lifted its position in shares of Elastic by 490.4% during the 3rd quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company's stock worth $94,080,000 after buying an additional 924,911 shares during the last quarter. 97.03% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 estimates, reporting adjusted EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with sales up 16% year over year. Management also highlighted subscription growth, cloud expansion, and continued enterprise traction. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: The company raised guidance for both fiscal 2027 and first-quarter fiscal 2027, with EPS and revenue outlooks coming in above consensus, which supports the case for continued growth and profitability improvement. ESTC Q4 Earnings Surpass Expectations, Revenues Increase Y/Y
• Neutral Sentiment: Several analysts reiterated constructive views after the print, including “outperform” and “buy” ratings, even as Wedbush and Oppenheimer trimmed price targets, reflecting confidence in the business but a reset in valuation expectations.
• Negative Sentiment: Some investors appear focused on slowing growth expectations in fiscal 2027 and the market’s reaction suggests the stock may be vulnerable if execution is solid but not enough to justify a higher multiple.

About Elastic

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.

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