Morgan Stanley analyst Sanjit Singh maintained a Buy rating on Elastic today and set a price target of $120.00.
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Sanjit Singh has given his Buy rating due to a combination of factors that highlight Elastic’s potential for growth and market expansion. The company’s recent financial performance showed an acceleration in revenue growth, with total revenue increasing by 18% year-over-year, surpassing previous quarter’s growth and consensus expectations. This improvement was driven by strong performance in Elastic Cloud and subscription revenues, which both saw notable year-over-year increases.
Sanjit Singh’s rating is also based on the promising opportunities in Elastic’s AI Search and security segments. The AI Search initiative is gaining traction, with a growing number of customers adopting Elastic for their generative AI needs. Additionally, the security business is showing strength, particularly with the SIEM replacement opportunity, which could serve as a significant growth driver. Despite the company’s conservative fiscal year guidance, these factors suggest potential for upward revisions, justifying the Buy rating.
Singh covers the Technology sector, focusing on stocks such as MongoDB, Elastic, and Datadog. According to TipRanks, Singh has an average return of 2.3% and a 51.74% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $125.00 price target.