10 AI Stocks Gaining Wall Street’s Attention

6. Elastic N.V. (NYSE:ESTC)

Number of Hedge Fund Holders: 52

On May 27, Cantor Fitzgerald analyst Thomas Blakey reiterated a “Neutral” rating on Elastic N.V. (NYSE:ESTC) with a $109.00 price target.  Elastic N.V. is a search AI company offering cloud-based solutions.

The firm keeps a cautious outlook on the stock amid concerns that Elastic’s initial fiscal year 2026 revenue guidance may not meet expectations. As per the analysts, consensus expectations for the company’s cloud revenue growth in Q4 of fiscal year 2025 are at +23.1%, a slight decline from 26% in the previous quarter.

This comes after the company’s strong 12-month revenue growth of 17.95%, bringing total revenue to $1.43 billion. They further pointed out that the total new business generated is likely to be 5% lower compared to a 28% increase in the third quarter, setting a modest tone for the year-end report expected to be released on Thursday, May 29, 2025.

Analysts also said that the company’s EBIT margin guidance, estimated at 15%, points to a record year. However, investors shouldn’t bet on a similar rate of margin improvement in fiscal year 2026, considering that the company plans to invest in artificial intelligence opportunities.