Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
On Wednesday, BMO Capital Markets updated its outlook on CrowdStrike Holdings (NASDAQ:CRWD), increasing the price target from $380.00 to $405.00 while maintaining an Outperform rating on the company’s shares. According to InvestingPro data, CrowdStrike’s stock has shown remarkable momentum with a 52% gain over the past six months, trading near $390. The company currently appears overvalued based on InvestingPro’s Fair Value analysis. Analyst Keith Bachman provided insight into the decision, stating that CrowdStrike remains a top contender in the cybersecurity sector. He noted that despite the expectation that customer commitment packages affected by the outage will influence the performance in the upcoming quarters, the company’s long-term prospects appear strong.
Bachman indicated that adjustments were made to the company’s financial projections, with a slight reduction in the FY26 Annual Recurring Revenue (ARR) and subscription revenue estimates. These figures are now anticipated to be more heavily weighted towards the latter half of the fiscal year. Additionally, there has been a significant decrease in the FY26 Free Cash Flow (FCF) estimates. CrowdStrike maintains strong financial health with a current ratio of 1.86 and operates with moderate debt levels, as revealed by InvestingPro analysis, which shows 12 additional key insights about the company’s financial position. The analyst emphasized that investors might need to exercise patience as these changes take effect.
The revision in the price target is attributed to the introduction of FY27 estimates, which assume a return to normalized growth and profit margins for CrowdStrike. Bachman’s confidence in the company’s strategic positioning within the security market is reaffirmed by the retention of the Outperform rating despite the near-term adjustments.
CrowdStrike’s role in the cybersecurity market has been closely monitored by investors, and BMO Capital’s latest price target adjustment reflects an optimistic view of the company’s future financial health. The new price target of $405.00 represents BMO Capital’s expectation for CrowdStrike’s share value, taking into account both the current challenges and the potential for recovery and growth in the coming years. With a robust revenue growth of 31.35% in the last twelve months and analysts forecasting continued profitability, the company shows strong fundamentals. For deeper insights into CrowdStrike’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, CrowdStrike Holdings reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.03, compared to the forecasted $0.86. The company achieved revenue of $1.06 billion, exceeding the anticipated $1.03 billion, marking a 25% year-over-year increase. Evercore ISI responded to these results by raising its price target for CrowdStrike to $450, citing strong performance and a positive outlook for the second half of the year. KeyBanc Capital Markets also adjusted its price target to $450, down from $480, while maintaining an Overweight rating, acknowledging the company’s robust growth in revenue and annual recurring revenue (ARR).
CrowdStrike’s management highlighted a 40% year-over-year increase in total contract value, reaching $6 billion, and maintained high gross retention rates at 97%. Despite these positive developments, KeyBanc noted that the fiscal year 2026 guidance presented a mix of positive and less favorable projections, with revenue exceeding expectations but margin forecasts falling short due to planned investments. The company confirmed expectations for an acceleration in net new annual recurring revenue (NNARR) in the second half of fiscal year 2026, with further acceleration anticipated in fiscal year 2027.
Evercore ISI emphasized the company’s forecasted operating margin growth, expecting it to reach 20% in fiscal year 2026 and 23% in fiscal year 2027. Free cash flow margins are projected to improve, exiting the fourth quarter at around 27% and returning to over 30% annually by fiscal year 2027. These developments reflect CrowdStrike’s strategic focus on growth through customer renewals, upsells, and new product adoption.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.