Elastic NV. (ESTC) PT Raised to $150 at Oppenheimer

Oppenheimer analyst Ittai Kidron raised the price target on Elastic NV. (NYSE: ESTC) to $150.00 (from $130.00) while maintaining a Outperform rating.

The analyst commented: "We expect Elastic to report revenue ahead of 1QFY25 guidance of $343-345M (+17.1% YoY vs. 19.7% in 1Q) and consensus estimates of $344.7M. Elastic reported solid 4QFY24 results, showing accelerating Cloud Revenue growth (+31.7% YoY), >$100K Customer Growth (+60 net adds; +14.7% YoY), and increasing traction for ESRE (over 1,000 paying customers). We believe the company can sustain its momentum into 1Q behind stable consumption from annual cloud customers and subsiding headwinds from cloud optimizations, and net, we view consensus Cloud Revenue estimates of $156.2M (+29% YoY) as attainable. That said, we expect upside to be constrained by continued macro pressure for SMB customers, which form the bulk of Elastic’s Monthly Cloud business (14% of Total Revenue in 4Q). For the quarter, we are focused on Cloud Revenue growth, Subscription Revenue growth (+21.4% YoY in 4Q), >$100k Customer growth, NDER (110% in 4Q; +1pt QoQ), and OM/FCFM (8.6%/17.9% in 4Q). We maintain our Outperform rating and raise our PT to $150."

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