Elastic, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Sherman from TD Cowen reiterated a Hold rating on the stock and has a $100.00 price target.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Andrew Sherman has given his Hold rating due to a combination of factors influencing Elastic’s current market position. The company is expected to report a modest beat and raise, but the competitive landscape, particularly in the security sector, presents risks. Elastic’s shares have recently outperformed, setting a higher benchmark for future performance.
Additionally, while the company has shown strong cloud revenue growth, the impact of pricing increases and mixed signals from market checks suggest a balanced outlook. The stock’s valuation, trading at approximately 4.6 times EV/Sales, reflects a fair market setup compared to its peers. Furthermore, concerns about customer churn to competitors and the growing momentum of OpenSearch add to the cautious stance. These elements collectively support the Hold recommendation, with a price target adjustment to $100.
In another report released on November 14, Wells Fargo also maintained a Hold rating on the stock with a $90.00 price target.