Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on ESTC stock, giving a Buy rating yesterday.
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Shrenik Kothari has given his Buy rating due to a combination of factors including Elastic’s strong financial performance in the recent quarter. The company surpassed market expectations in key areas such as total revenue, which grew by 15.9% year-over-year, and Elastic Cloud revenue, which increased by 21.8% year-over-year, both exceeding consensus estimates.
Additionally, the operating margin outperformed predictions, reaching 16.5%, and the earnings per share of $0.64 also surpassed expectations. Despite a temporary market reaction that saw the stock price decrease, Kothari views this as an overreaction, noting that the company’s fundamentals remain robust with a promising outlook for the medium to long term. The raised revenue guidance for FY25 further supports the positive sentiment, indicating continued growth potential for Elastic.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ESTC in relation to earlier this year.