Oppenheimer Cuts Elastic (NYSE:ESTC) Price Target to $75.00

Key Points

• Oppenheimer lowered Elastic’s price target from $85 to $75, while keeping an outperform rating on the stock. The new target still implies roughly 30% upside from the prior close.
• Analyst sentiment remains mixed but constructive: multiple firms recently cut targets, yet Elastic still carries a Moderate Buy consensus with an average price target of about $85.41.
• Elastic’s latest quarter beat expectations, with EPS of $0.61 and revenue of $450.7 million, both above estimates and revenue up 16% year over year. The company also guided Q1 FY2027 EPS above Street estimates, though investors appear concerned about slower growth ahead.

Elastic (NYSE:ESTC - Get Free Report) had its target price reduced by Oppenheimer from $85.00 to $75.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Oppenheimer's price target would indicate a potential upside of 30.49% from the company's previous close.

Other equities analysts also recently issued research reports about the company. TD Cowen reduced their price target on Elastic from $65.00 to $60.00 and set a "hold" rating for the company in a research report on Tuesday. DA Davidson lowered their price objective on shares of Elastic from $80.00 to $65.00 and set a "neutral" rating on the stock in a report on Monday, March 2nd. Citigroup cut their price objective on shares of Elastic from $115.00 to $95.00 and set a "buy" rating on the stock in a research report on Friday, February 20th. The Goldman Sachs Group started coverage on shares of Elastic in a research report on Tuesday, April 21st. They issued a "neutral" rating and a $50.00 target price for the company. Finally, Guggenheim lowered their price target on shares of Elastic from $116.00 to $106.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $85.41.

Elastic Stock Performance

ESTC opened at $57.48 on Friday. The business's 50-day moving average price is $50.20 and its two-hundred day moving average price is $62.82. Elastic has a 1 year low of $42.05 and a 1 year high of $96.07. The company has a market capitalization of $5.95 billion, a price-to-earnings ratio of -71.85, a P/E/G ratio of 101.99 and a beta of 0.88. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.82 and a quick ratio of 1.82.

Elastic (NYSE:ESTC - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.05. The company had revenue of $450.68 million during the quarter, compared to analysts' expectations of $446.66 million. Elastic had a negative return on equity of 2.34% and a negative net margin of 5.04%.Elastic's revenue for the quarter was up 16.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.47 earnings per share. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS. Equities analysts expect that Elastic will post 0.04 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Carolyn Herzog sold 3,989 shares of the firm'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 $208,544.92. Following the completion of the transaction, the insider directly owned 85,335 shares of the company's stock, valued at approximately $4,461,313.80. This trade represents a 4.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Jane E. Bone sold 887 shares of the business's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $52.28, for a total transaction of $46,372.36. Following the transaction, the chief accounting officer owned 42,284 shares in the company, valued at approximately $2,210,607.52. The trade was a 2.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 38,188 shares of company stock worth $1,996,469 in the last quarter. 12.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Elastic

A number of institutional investors and hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC bought a new position in Elastic during the fourth quarter worth about $25,000. Geneos Wealth Management Inc. bought a new stake in Elastic in the second quarter valued at approximately $31,000. Bessemer Group Inc. acquired a new stake in shares of Elastic in the first quarter valued at approximately $25,000. Activest Wealth Management lifted its position in shares of Elastic by 3,181.3% in the fourth quarter. Activest Wealth Management now owns 525 shares of the company's stock valued at $40,000 after buying an additional 509 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd boosted its stake in shares of Elastic by 206.1% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock worth $42,000 after acquiring an additional 371 shares during the period. 97.03% of the stock is owned by institutional investors.

Key Stories Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 estimates, reporting EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with revenue up 16% year over year. Article Title
• Positive Sentiment: The company also issued Q1 FY2027 EPS guidance of $0.57 to $0.59, above the Street’s $0.50 estimate, suggesting near-term earnings momentum. Article Title
• Positive Sentiment: Elastic highlighted stronger cash generation, including $152.7 million in operating cash flow and a larger contracted backlog, which may support the long-term growth story. Article Title
• Neutral Sentiment: Several analysts remain constructive, with Rosenblatt reiterating a Buy and JPMorgan still at Overweight, though JPMorgan cut its price target to $80 from $99, reflecting a more cautious near-term stance. Article Title
• Negative Sentiment: Investors appear disappointed by the company’s forward view, which implies mid-teens revenue growth in fiscal 2027 after a strong year, raising concerns that growth could be moderating. Article Title
• Negative Sentiment: The stock also saw pressure as some reports noted the market’s reaction to the earnings release and guidance was negative, with shares falling after the print despite the beat. Article Title

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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