Shrenik Kothari, an analyst from Robert W. Baird, maintained the Buy rating on Elastic (ESTC – Research Report). The associated price target remains the same with $115.00.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Elastic’s financial performance and strategic positioning. The company has shown a robust increase in its remaining performance obligations (RPO), which grew by over 14% year-over-year and quarter-over-quarter, indicating strong future revenue potential. Additionally, a significant portion of this RPO is expected to be recognized as revenue within the next 12 to 24 months, providing a stable financial outlook.
Furthermore, Elastic’s revenue from deferred sources and its geographic revenue distribution, particularly in the United States, demonstrate a healthy revenue stream. Despite facing competitive pressures and potential risks from federal spending cuts, Elastic’s strategic adjustments, such as changes in competition and shifts in revenue mix, position it well to navigate these challenges. The company’s increased investment in research and development, as well as sales and marketing, underscores its commitment to growth and innovation, supporting the Buy recommendation.
In another report released on June 2, Canaccord Genuity also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 54 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.