Elastic (ESTC) Positioned to Benefit from AI Use Cases and Tool Consolidation

Elastic N.V. (NYSE:ESTC) is one of the 10 AI Stocks Gaining Attention on Wall Street. On January 30, Rosenblatt analyst Blair Abernethy lowered the price target on the stock to $110.00 (from $130.00) while maintaining a “Buy” rating. While there are multiple compression and macro pressures for ESTC, the firm sees strength in tool consolidation and AI-led use cases.

Rosenblatt noted that Elastic is expected to report an in-line to marginal beat in Q3/FY 26 results when it reports in late February.  It highlighted recent product advancements of the company, such as the general availability release of its Agent Builder, and also the previous realignment of sales on high value customers.

These factors leave the company well-positioned to benefit from tool consolidation trends in log management, legacy SIEM modernization, and development of new AI and agentic applications using the Elastic Search Relevance Engine with vector database capabilities.

The firm noted that it is leaving its estimates unchanged ahead of third quarter, forecasting Elastic Cloud growth of 21% compares to the 22% in second quarter. Nevertheless, it is taking this opportunity to reduce its price target, a reflection of recent comparable multiple compression and ongoing macro concerns which impact enterprise software.

Elastic N.V. (NYSE:ESTC) is a search AI company offering cloud-based solutions.

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Disclosure: None. This article is originally published at Insider Monkey.