Wedbush analyst Daniel Ives initiates coverage on $Elastic (ESTC.US)$ with a buy rating, and sets the target price at $135.
According to TipRanks data, the analyst has a success rate of 54.5% and a total average return of 5.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Elastic (ESTC.US)$'s main analysts recently are as follows:
The company's Q2 results exceeded expectations in multiple areas which is likely to positively influence investor sentiment. Elastic seems to be making significant progress following its go-to-market adjustments earlier in the year. The outlook for the latter half of the year appears promising, based on the recent performance trends observed.
Following a 'strong' Q2 performance, the company demonstrated a significant recovery from earlier go-to-market missteps observed in Q1. The recent quarter witnessed accelerated bookings and billings growth, along with an increasing contribution from generative artificial intelligence. Analysts believe that generative AI is catalyzing a revival in the company's primary search business and anticipate the stock's positive trajectory will persist with resolved execution issues and still-conservative guidance.
The company's recent quarterly results suggest that the transition within the sales organization may not have been as disruptive as initially anticipated, although it remains a potential risk. The updated guidance for FY25, projecting total revenue growth of 10%-13% year-over-year by the end of FY25, suggests a conservative approach, yet this forecast could be seen as somewhat unimpressive given the dynamic sectors of gen-AI, security, and observability that the company engages in.
Note:
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