Wedbush Trims Elastic (ESTC) Price Target, Maintains Outperform Rating

On May 30, Wedbush analyst Daniel Ives lowered his price target on Elastic N.V. (NYSE:ESTC) to $110 from $135, while maintaining an Outperform rating following the company’s fiscal fourth-quarter earnings. Elastic N.V. (NYSE:ESTC) reported strong results that topped Wall Street estimates on both revenue and earnings, reinforcing the company’s execution strength. However, despite the quarterly outperformance, investor focus quickly shifted to the company’s fiscal 2026 guidance, which fell short of consensus expectations.

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According to Ives, the subdued outlook reflects growing caution among enterprise customers. As organizations ramp up their adoption of generative AI technologies, spending priorities are shifting, prompting closer scrutiny on cloud and data platform consumption—areas where Elastic plays a central role. Wedbush noted that the challenging macroeconomic environment is compounding these concerns, with longer sales cycles and tighter IT budgets emerging as recurring themes. Still, the firm sees these headwinds as near-term obstacles rather than structural issues for Elastic.

Elastic’s long-term growth prospects remain intact, particularly as demand for AI-driven search, observability, and security solutions continues to rise. The company’s positioning within the broader AI and data analytics landscape is seen as a strategic advantage once spending stabilizes. Despite the lowered target, Wedbush’s continued Outperform rating reflects confidence in Elastic’s leadership and product roadmap.

While we acknowledge the potential of ESTC as an investment, 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.

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Disclosure: None.