What happened Shares of Elastic (NYSE: ESTC) were rallying over 10% higher today as of market close. This comes after a recent double-digit percentage plunge -- first on worries of the omicron variant, then a sell-off following what was actually a rock solid quarterly earnings update last week. Image source: Getty Images. The cause of today's reversal? A Wall Street analyst thinks the punishment dealt to Elastic is unwarranted. So what Specifically, J.P. Morgan analyst Mark Murphy upgraded Elastic from neutral to overweight with a $156 one-year price target. Closing today at just over $128 per share, that implies some 21% upside for the stock if the prediction is correct. Short-term stock price outlooks aren't all that meaningful for long-term investors who own businesses for their potential years down the road, but I for one agree with the note that Elastic's downturn looks overdone. The company has consistently grown at a double-digit percentage pace for years (42% sales growth in the last quarter), and it has managed its transition to cloud-based software far better than industry peer Splunk. If you're looking for a top data analytics and cloud observability stock, Elastic deserves to be in the conversation right now. Now what For the current fiscal year, Elastic expects revenue to grow about 36% year over year to at least $826 million. Based on that outlook, shares currently trade for 14.5 times sales. Not a terrible premium for a high-growth software outfit with lots of expansion ahead of it -- and one that could someday be highly profitable, too. Given Elastic's enduring growth trajectory, today's analyst upgrade and subsequent stock jump isn't so unusual. Keep this cloud-based software company on your radar. 10 stocks we like better than ElasticWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Elastic wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 10, 2021 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Nicholas Rossolillo and his clients own shares of Splunk. The Motley Fool owns and recommends Elastic and Splunk. The Motley Fool has a disclosure policy.Source