Monness analyst Brian White maintained a Buy rating on Elastic today and set a price target of $150.00.
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Brian White has given his Buy rating due to a combination of factors that highlight Elastic’s strong position in the tech industry. The company has shown resilience and potential for growth, particularly with its involvement in generative AI, which is expected to be a significant driver of future innovations. Elastic’s claim of having the leading vector database positions it advantageously as more businesses develop AI applications.
Furthermore, Elastic has demonstrated solid performance in expanding its operating margins, moving from 4.3% in FY:23 to 15.2% in FY:25. Despite missing previous revenue targets, the company has adjusted its financial expectations more prudently under the new CFO, Navam Welihinda. The anticipated financial results for FY:26, including a projected revenue of nearly $1.7 billion and an operating margin of 16%, support the positive outlook. However, potential macroeconomic challenges, such as the U.S. government shutdown, remain a consideration.
According to TipRanks, White is a top 100 analyst with an average return of 17.9% and a 69.74% success rate. White covers the Technology sector, focusing on stocks such as MongoDB, Apple, and Workday.