UBS Resumes Coverage on Elastic (ESTC) With Buy Rating, $95 Price Target

Elastic N.V. (NYSE:ESTC) is one of the AI Stocks Investors Are Watching Right Now. On August 13, UBS analyst Radi Sultan resumes coverage on the stock with a Buy rating and a price target of $95.00 (from $148.00).

The coverage resumption follows conversations with more than fifteen industry checks which have revealed stable to slightly improved demand environment for Elastic’s services. The firm particularly likes the “the near-term numbers setup + medium-term upside optionality from GenAI”.

“With the stock pricing in ~12% growth in FY26/27E, we are modeling 13% (in FY26/27E) but think risk is skewed to the upside as we believe Elastic could do 15-16% growth in an upside case. We’re also ~4%/6% ahead of the Street for FCF in FY26/27E.”

A financial analyst looking at a computer monitor filled with stock market data, expressing confidence in the company’s investments.

UBS also believes that the AI narrative will eventually shift in Elastic’s favor. However, the real GenAI opportunity is one or two years away.

“While we did hear positive datapoints on the AI Search lift and we see room for the AI narrative to shift in Elastic’s favor, the real GenAI opportunity still sounds 1-2 years away. The key risk we picked up was competition, but at ~4x CY26E Revs we think this is mostly priced in.”

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

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