Elastic N.V. (NYSE:ESTC) is one of the Must-Watch AI Stocks on Wall Street. On August 29, DA Davidson analyst Lucky Schreiner assumed coverage on the stock a Neutral rating and a price target of $105.00 (from $75.00).
The firm highlighted how Elastic has reported impressive 1Q26 results with accelerating revenue growth. Moreover, its better-than-expected guidance allowed shares to soar after hours.
The firm also discussed how there is an increasing demand for Elastic's AI Search functionality as AI and Agentic applications are developed. Meanwhile, security consolidation trends also "stood out" during the quarter.
A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels
"With this note, we are transitioning coverage of Elastic with a NEUTRAL rating and $105 price target. Elastic reported impressive 1Q26 results with accelerating revenue growth landing ahead of expectations and provided a better than expected guide sending shares higher after hours. Demand for Elastic's AI Search functionality is increasing as AI and Agentic applications are created and security consolidation trends stood out in the quarter. Price increases did contribute to the outperformance, regardless, sales execution continues to improve as Elastic grows with larger enterprise customers."
Elastic N.V. is a search AI company offering cloud-based solutions.
While we acknowledge the potential of ESTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.