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Investing.com - Bernstein lowered its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $343.00 from $371.00 on Thursday, while maintaining a Market Perform rating on the cybersecurity company. The stock, currently trading at $422.61, has delivered an impressive 60% return over the past year and is trading near its 52-week high of $517.98. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The price target adjustment follows CrowdStrike’s fiscal second quarter 2026 results, which showed year-over-year subscription growth declining to 20.1%. This marks the final quarter before the company begins to lap the effects of its July 2023 outage.
Despite beating its own guidance by approximately $21 million (+1.8%) in the quarter, CrowdStrike raised its full-year outlook by just $3 million. The company indicated that professional services would be strong, implicitly suggesting lower subscription revenue in the second half of the year.
Bernstein noted that CrowdStrike’s guidance was "underwhelming" compared to consensus estimates, with third-quarter guidance approximately $15 million below consensus at the midpoint and implied fourth-quarter guidance about $9 million below consensus.
The firm’s updated price target reflects a valuation based on a combination of rule of 40-based multiples regression (15x, down from 18x) and discounted cash flow analysis using a 10% weighted average cost of capital and 3% growth rate.
In other recent news, CrowdStrike Holdings reported earnings that exceeded expectations, raising its full-year operating income and EPS guidance. Despite this, the company maintained the high end of its previous revenue outlook, which some analysts viewed as conservative. Following the earnings report, Cantor Fitzgerald reiterated an Overweight rating with a $475 price target. Rosenblatt Securities adjusted its price target to $490 from $515, maintaining a Buy rating, while noting the conservative guidance that tempered investor enthusiasm. Stifel also maintained a Buy rating with a $495 price target, highlighting the company’s net new annual recurring revenue (NNARR) of $221 million, which surpassed consensus expectations. BMO Capital lowered its price target to $450, citing adjustments following the earnings report and an increase in net new ARR estimates for fiscal years 2026 and 2027. Evercore ISI reduced its price target to $405, describing the quarterly results as "solid but not exceptional" and noting that the third-quarter guidance and implied fourth-quarter revenue were below expectations. These developments reflect the mixed analyst reactions to CrowdStrike’s recent performance and future guidance.
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