Elastic (ESTC) is poised to accelerate growth as generative artificial intelligence tailwinds get stronger, Oppenheimer said in a note Thursday.

The brokerage said that at the company's investor day, management showed Elastic's "differentiated position" and its value-add in agentic AI.

Oppenheimer said management shared "encouraging" generative AI data points, such as net expansion of 16% for generative AI customers compared with 10% for others and a "steadily growing" AI adoption.

"We come away with increased conviction in Elastic's value proposition as an enabler of GenAI/Agentic AI-enabled applications and workflows," the firm said.

Oppenheimer maintained Elastic's outperform rating and $119 price target.

The company's shares were up more than 7% in recent Friday trading.

Price: 86.94, Change: +5.39, Percent Change: +6.61