Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on ESTC stock, giving a Buy rating on November 13.
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Shrenik Kothari has given his Buy rating due to a combination of factors that suggest a favorable outlook for Elastic. The company has shown strong positioning in the areas of GenAI search, SIEM, and observability, which are reinforced by recent management commentary and analyst checks. Elastic’s updated fiscal year guidance reflects improved visibility into demand, driven by stronger cloud consumption signals and solid enterprise commitments.
Moreover, Elastic is benefiting from easier revenue comparisons in the second half of the fiscal year, alongside a more favorable federal backdrop. The company’s traction in replacing competitors like Splunk and QRadar, thanks to its lower total cost of ownership and AI-readiness, is also notable. Despite some federal risks, Elastic’s execution appears well-managed, and the company is showing signs of improved sales productivity. The stock’s valuation remains attractive, with potential for outperformance as the company capitalizes on growing GenAI validation and cloud traction.
Kothari covers the Technology sector, focusing on stocks such as Elastic, JFrog, and Okta. According to TipRanks, Kothari has an average return of 23.2% and a 66.54% success rate on recommended stocks.
In another report released on November 13, Monness also maintained a Buy rating on the stock with a $150.00 price target.