William Blair analyst Jake Roberge has maintained their bullish stance on ESTC stock, giving a Buy rating today.
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Jake Roberge has given his Buy rating due to a combination of factors that highlight Elastic’s strong underlying fundamentals. Despite a smaller than expected revenue beat and softer billings growth attributed to federal deal delays, Elastic’s quarterly results exceeded consensus estimates on both top and bottom lines. The company’s annual contract value (ACV) growth has accelerated, surpassing last year’s figures and indicating robust business momentum.
Furthermore, Elastic’s engagement with GenAI workflows has shown significant progress, with multiple high-value deals and an increase in customers utilizing these solutions. The company’s strategic go-to-market changes have also resulted in substantial large deal commitments. Despite challenges from the government shutdown, demand in the federal sector remains strong, exemplified by a significant $26 million deal. These positive trends and strategic advancements underpin Roberge’s confidence in recommending a Buy rating for Elastic’s stock.
Roberge covers the Technology sector, focusing on stocks such as Jamf Holding, Adobe, and Elastic. According to TipRanks, Roberge has an average return of -3.4% and a 39.01% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $107.00 price target.