
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic's stock outlook is bolstered by a significant increase in high-value customer acquisition, with 60 net new customers generating over $100K in annual contract value (ACV), bringing the total to over 1,660 and a 30% year-over-year growth in $1M+ ACV customers. Additionally, the company reported a strong net retention rate of 112% for the seventh consecutive quarter and a notable rise in current remaining performance obligations (cRPO) to $1.055 billion, reflecting a 19% year-over-year increase and indicating long-term customer commitment to Elastic’s solutions. Furthermore, sales-led subscription revenue grew 21% year-over-year, while cloud revenue exceeded expectations at $218.5 million, contributing to an overall positive momentum in sales execution, particularly in large strategic deals.
Bears say
The negative outlook on Elastic's stock is primarily driven by a forecasted sequential decline in revenue for the fourth quarter, which is expected to fall between $371 million and $373 million, influenced by fewer calendar days and increased expenses. Additionally, there are significant concerns regarding product execution, slowing growth in core markets, and intense competition with established players like Splunk and Datadog, which could further pressure profitability and market share. Lastly, the company's current expectations for an 18% year-over-year growth in subscriptions are under scrutiny, as this could lead to multiple compression if the anticipated use case expansions do not materialize.
This aggregate rating is based on analysts' research of Elastic N.V and is not a guaranteed prediction by Public.com or investment advice.
Elastic N.V (ESTC) Analyst Forecast & Price Prediction
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