UBS Maintains Buy on Elastic (ESTC) Following Strong Q1 Revenue Growth

Elastic N.V. (NYSE:ESTC) ranks among the best software stocks to buy right now. UBS maintained its Buy rating on Elastic N.V. (NYSE:ESTC) following the company’s impressive first-quarter results, raising its price target from $95 to $125 on August 29.

The company announced a 20% increase in its total revenue, greatly above investor estimates of 17% and beating the high end of guidance by 4.3%, the most significant beat in over three years.

According to UBS, Elastic’s revised revenue growth projection for fiscal year 2026 of 14% (up from 13% before) is “increasingly conservative.” Based on the firm’s estimations, Elastic N.V. (NYSE:ESTC) could grow by 18% in FY26, assuming quarterly revenue additions continue in the same manner as the previous year for the rest of the fiscal year.

Elastic N.V. (NYSE:ESTC) is a software company that offers solutions for search, logging, analytics, security, and observability needs.

While we acknowledge the potential of ESTC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ESTC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

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