synopsis

Despite the downward revision, Scotiabank’s new price target implies a 44% upside for Elastic stock compared to its current levels.

Elastic N.V. (ESTC) shares shed 4.33% on Thursday after an analyst tempered his opinion concerning the artificial intelligence (AI)-enabled search company. The stock is on track to open moderately lower during Friday's session.

The negative sentiment aligned with weakness seen in stock futures as traders look forward to the release of an all-important inflation data amid fears that President Donald Trump's tariffs could reignite pricing pressure. 

On Thursday, Scotiabank Patrick Colville reduced the price target for Elastic stock to $137 from $140 and maintained an 'Outperform' rating. Despite the cut, the new price target implies a 44% upside from current levels.

The price target revision resulted from the brokerage adjusting its model for the technology sector after software stocks had a rough start to 2025.

On Stocktwits, retail sentiment toward the Elastic stock remained 'neutral' (46/100), and the message volume stayed 'extremely low.'

ESTC sentiment and message volume March 28, as of 5 am ET | Source: Stocktwits

A watcher, though conceding that the stock aligns with the Nasdaq Composite Index, said it continues to rise in prominence as a tech company with each earnings report.

The third-quarter results released in late February were sharply higher than expectations, sending the company's shares soaring by about 15%. Elastic attributed the outperformance to continued interest from customers building Generative AI (GenAI) applications and consolidating them onto a single platform.

The company's fourth-quarter and fiscal 2025 guidance also topped expectations.

Following its third-quarter results, analysts scrambled to upwardly adjust their price targets for the stock, lauding the company for reporting solid results for a second straight quarter.

Elastic stock ended Thursday's session down 4.33% to $95.06 and is down nearly as much this year. In Friday's premarket trading, the stock was down 0.39%.

The Koyfin-compiled consensus analysts' price target for the stock is $133.50.

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