Jefferies analysts upgraded shares of Elastic N.V. (NYSE:ESTC) to Buy from Hold, raising the price target for the stock to $100 from $75 per share in a note Wednesday.
The firm revealed it is upgrading the stock after two solid quarters of execution, revenue acceleration heading into FY25, and shares trading at a discount to publicly traded peers.
"With the industry seeing consolidation and the co.'s unique positioned to benefit from AI workloads with search being at the forefront of AI, we believe revenue could accelerate into FY25," wrote the analysts at Jefferies.
"The margin profile has improved over the last two years, yet the company still operates below its cruise altitude of 20%+," they added.
Furthermore, Jefferies said the setup as the company heads into its F2Q is "undaunting, with easing comps and a prudent guide." As a result, they view this as a "path to delivering results above expectations."