Elastic Stock Rises On Analyst’s Bullish Recommendation But Retail Remains Guarded

Elastic N.V. ($ESTC) shares rose in Tuesday’s premarket trading following a positive analyst action, perking up retail sentiment.

San Francisco, California-based Elastic is an artificial intelligence-enabled search company that enables customers to find answers in real time using all their data at scale. 

The company’s solutions are built on the Elastic Search AI Platform, the development platform used by thousands of companies, including more than 50% of the Fortune 500 companies. 

Morgan Stanley analyst Sanjit Singh initiated coverage of Elastic with an ‘Overweight’ rating and a $130 price target, which suggests a potential upside of over 24%, TheFly reported. 

The analyst said the company’s search market is poised to accelerate as customers modernize search experiences and are early in bringing artificial intelligence (AI) to their apps. Elastic is well positioned to sustain share in the accelerating end market, supported by its strong customer checks and GitHub analysis, he added.

The company reported better-than-expected fiscal year 2025 second-quarter results in late November. It attributed the solid performance to strong customer commitments, key wins across all its solution areas, and continued momentum in GenAI and platform consolidation. 

Elastic also raised its fiscal year 2025 revenue guidance.

ESTC sentiment and message volume December 17, 2024, as of 8:43 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Elastic stock improved from 'neutral' a day ago to 'bullish' (52/100), while message volume remained 'normal'. 

In premarket trading, as of 8:43 a.m. EDT, Elastic shares climbed 2.28% to $107. The stock has fallen more than 7% this year.

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