Here is Why Elastic N.V. is One of Hedge Funds’ Top Picks

Elastic N.V. (NYSE:ESTC) is one of the best software application stocks to buy according to Hedge Funds.

At the close of play on January 15, broader sentiment around Elastic N.V. (NYSE:ESTC) remains moderately bullish. The stock has received coverage from a total of 26 analysts, of which 16 have assigned Buy ratings. There were 10 Hold calls, and with no Sell rating, it currently offers an upside potential of 39%. This is based on a 1-year median price target of $101.14 for the stock.

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On January 5, Matthew Hedberg from RBC Capital maintained his optimistic outlook on Elastic N.V. (NYSE:ESTC). He kept an Outperform rating on the stock but lowered his estimated price target from $115 to $95. Even after this downward revision, his forecasts yield an upside potential of almost 31%.

Hedberg’s rating is part of RBC Capital’s 2026 outlook, according to which AI adoption will be a major catalyst. This will benefit certain businesses that are well-positioned for these developments. The firm also highlighted that peers who aren’t prepared for these disruptions will struggle in such an environment that is shaped by the “AI is the death of software” narrative.

Elastic N.V. (NYSE:ESTC) provides a search artificial intelligence platform that offers self-managed and cloud-hosted solutions within and outside the United States. This platform operates in hybrid, public, private, and multi-cloud environments, which can source data from different sources. The platform also allows users to perform visualizations and analytics on fetched data.

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Disclosure: None. This article is originally published at Insider Monkey.