Morgan Stanley cuts Elastic NV target price significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2025
0mins
Should l Buy ESTC?
Source: TipRanks
Elastic NV's stock has dropped 5.66% and hit a 52-week low amid broader market declines, with the Nasdaq-100 down 1.34% and S&P 500 down 1.07%.
The core catalyst for this decline is Morgan Stanley's announcement of a target price reduction from $110 to $80, reflecting a more cautious outlook on the company's future performance. This significant cut in target price has contributed to negative sentiment surrounding the stock, especially in the context of a weak market environment.
As investors react to the lowered target price, Elastic NV may face continued pressure on its stock price, particularly as it navigates through a challenging market landscape.
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Analyst Views on ESTC
Wall Street analysts forecast ESTC stock price to rise
26 Analyst Rating
16 Buy
10 Hold
0 Sell
Moderate Buy
Current: 49.410
Low
75.00
Averages
101.14
High
130.00
Current: 49.410
Low
75.00
Averages
101.14
High
130.00
About ESTC
Elastic NV is a Netherlands-based data analytics company. The Company’s platform, which is available as both a hosted, managed service across public clouds as well as self-managed software, allows its customers to find insights from large amounts of data and take action. The Company offers three search-powered solutions - Enterprise Search, Observability, and Security - that are built into the platform, which is built on the Elastic Stack, a set of software products that ingest data from any source, in any format, and perform search, analysis, and visualization of that data. The Company helps organizations, their employees, and their customers find what they need, while keeping mission-critical applications running smoothly, and protecting against cyber threats. The Company generates revenue primarily from sales of subscriptions to its platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Elimination of Endpoint Tax: Elastic Security has announced the removal of per-endpoint pricing for its XDR platform, which achieved a 100% protection rating in AV-Comparatives' 2025 Business Security evaluation, thereby reducing total cost of ownership by up to 70% for organizations.
- Comprehensive Protection Capability: By eliminating the endpoint tax, Elastic Security enables organizations to achieve full protection across all assets, preventing security blind spots that budget constraints could create, ensuring no vulnerabilities are left in an increasingly complex AI attack landscape.
- Enhanced User Experience: Elastic Security XDR is integrated into an open SOC platform, providing unified detection, investigation, and response capabilities without the complexity of per-device charges, allowing security teams to manage security incidents more efficiently.
- Industry-Leading Security: The general manager of security at Elastic stated that removing endpoint pricing allows security teams to avoid choosing between comprehensive protection and manageable costs, further solidifying Elastic's leading position in the industry.
See More
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- Declining Sales Trend: Hudson Technologies (HDSN) has experienced a 7.6% annual sales decline over the past two years, with earnings per share falling by 39.1% annually, suggesting its products have failed to meet market demands effectively, posing challenges for future profitability.
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- Market Opportunity Exploration: Despite the presence of value traps, investors can leverage the StockStory platform to uncover potential high-quality companies, aiding in the identification of genuine investment opportunities within the market to enhance decision-making effectiveness.
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- Purpose of Disclosure: The primary purpose of these filings is to inform investors about the holdings of major shareholders and their potential impact on corporate governance and strategic direction, thereby aiding market participants in making more informed investment decisions.
- Regulatory Requirements: Under U.S. securities law, any investor holding more than 5% must promptly file a 13D, ensuring that all market participants have access to relevant information and maintaining market fairness.
- Market Impact: The disclosure of 13D filings can influence stock prices and investor confidence, particularly when changes in major shareholder holdings may signal future strategic adjustments or potential acquisitions for the company.
See More
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Reporting Requirements: Any changes in holdings or intentions must be reported through amended filings within a specified timeframe.
Timeframe of Disclosures: The material covers disclosures made from February 26 to March 4, 2026.
Source of Information: The data is sourced from VerityData, indicating its relevance and credibility in tracking these filings.
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- Holding Proportion Analysis: This acquisition represents 5.74% of Kettle Hill's reportable AUM in its 13F filing, indicating the significance of SentinelOne in its investment portfolio and potentially influencing future investment strategies.
- Market Performance Review: As of February 13, 2026, SentinelOne shares were priced at $13.87, down 44.5% year-over-year, with the company's revenue growth hindered by intense competition in the cybersecurity sector, raising concerns about its future prospects.
- Investment Outlook: Despite challenges, Kettle Hill's purchase of SentinelOne at a price-to-sales ratio lower than that of Palo Alto Networks and CrowdStrike suggests optimism regarding the company's AI-driven cybersecurity platform's potential for positive returns, especially given the increasing demand for cybersecurity in today's tech landscape.
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