What happened
Shares of Elastic NV (ESTC 2.52%) rose today after the company received a buy rating from Citi analyst Tyler Radke. The company's share price jumped as much as 10.4% during afternoon trading.
As of 3:15 p.m. EDT, Elastic's stock was up 10.1%.
So what
Investors were happy to see Radke's upgrade today, which also came with a price-target adjustment. The analyst set a new target of $126, up from the previous $90. The resulting bump in Elastic's share price means that the tech company's stock is now up 26% over the past 12 months.
Image source: Getty Images.
While those share price gains aren't terrible, they've trailed other data analytics stocks including Splunk, whose share price is up about 60% over the past year. Elastic's stock has been a bit volatile over the past few months after rising 34% in May and then falling 8% in the first week of June -- after the company reported its fourth quarter and fiscal 2020 results.
Now what
While today's upgrade from Citi provided a boost for Elastic's share price, the company's stock could still experience more volatility ahead. The current 10% unemployment rate brought on by the coronavirus pandemic has brought a lot of uncertainty to the U.S. economy. Investors should do their homework on Elastic before investing in the company for the long haul and not lean too heavily on one analyst's stock upgrade.
