TD Cowen Lowers Elastic (ESTC) Price Target to $85, Maintains Hold

Elastic N.V. (NYSE:ESTC) is one of the AI Stocks Hit with New Analyst Ratings. On August 26, TD Cowen analyst Andrew Sherman lowered the price target on the stock to $85.00 (from $90.00) while maintaining a Hold rating. The lower price target comes ahead of the company’s print due on August 28.

The firm has updated its model ahead of its quarterly results, anticipating a beat and raise. Moreover, given the new CFO, the company will likely guide conservatively.

“Expecting Modest Beat & Raise; ESTC reports on 8/28. We expect a beat & raise given new CFO likely guided conservatively. Our partner checks remain mixed, citing fine renewals but competitive factors & AI risks. Our partner survey down-ticked w/ 67% met/beat vs. 86% last qtr, though pipelines looked better. At 4.3x EV/Sales we see low expectations but a return to Cloud upside is needed.”

“Shares are -14% since reporting 4Q (IGV +5%). Sentiment seems relatively bearish & valuations at ~4.3x EV/CY26E Sales & ~20x EV/FCF shares trade at a discount to 10-15% comps at ~5x. Reiterate Hold & lower PT to $85 (~4.5x EV/CY26E Sales).”

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

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Disclosure: None.