Elastic (ESTC) Coverage Initiated at Neutral by DA Davidson With $105 Target

Elastic N.V. (NYSE:ESTC) is one of the Must-Watch AI Stocks on Wall StreetOn August 29, DA Davidson analyst Lucky Schreiner assumed coverage on the stock a Neutral rating and a price target of $105.00 (from $75.00).

The firm highlighted how Elastic has reported impressive 1Q26 results with accelerating revenue growth. Moreover, its better-than-expected guidance allowed shares to soar after hours.

The firm also discussed how there is an increasing demand for Elastic’s AI Search functionality as AI and Agentic applications are developed. Meanwhile, security consolidation trends also “stood out” during the quarter.

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“With this note, we are transitioning coverage of Elastic with a NEUTRAL rating and $105 price target. Elastic reported impressive 1Q26 results with accelerating revenue growth landing ahead of expectations and provided a better than expected guide sending shares higher after hours. Demand for Elastic’s AI Search functionality is increasing as AI and Agentic applications are created and security consolidation trends stood out in the quarter. Price increases did contribute to the outperformance, regardless, sales execution continues to improve as Elastic grows with larger enterprise customers.”

Elastic N.V. is a search AI company offering cloud-based solutions.

While we acknowledge the risk and potential of ESTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ESTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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