BTIG lowers CrowdStrike stock price target to $489 from $520, maintains Buy rating

Published 28/08/2025, 11:54
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Investing.com - BTIG has lowered its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $489 from $520 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has delivered an impressive 60% return over the past year, with analyst targets ranging from $330 to $610.

The firm cited mixed signals in CrowdStrike’s second-quarter fiscal 2026 results, noting that while headline numbers were solid, some investors have raised concerns about the thin Annual Recurring Revenue (ARR) beat and limited flow-through of quarterly revenue upside to the full-year outlook. The company maintains strong fundamentals with a healthy current ratio of 1.85 and revenue growth of 26% over the last twelve months.

CrowdStrike reported ARR of $4,657 million, representing 20.5% year-over-year growth, with net ARR additions of $221 million exceeding Street estimates of $206 million but falling below a previously discussed upside scenario of $235 million.

The company beat its second-quarter revenue guidance by $21 million (1.8%) but only increased its full-year guidance by $3 million, effectively reducing its second-half fiscal 2026 outlook by $18 million or 0.7%.

Despite these concerns, BTIG remains optimistic about CrowdStrike’s growth trajectory, noting management’s positive comments on second-half ARR additions and expectations that total ARR growth will accelerate from 20.5% year-over-year in the second quarter to over 22% by the fourth quarter of fiscal 2026. With a market capitalization of $105.6 billion and 31 analysts recently revising earnings estimates upward, the company maintains a strong position in the cybersecurity sector.

In other recent news, CrowdStrike Holdings reported strong second-quarter earnings for fiscal year 2026, surpassing analysts’ expectations. The company posted an earnings per share of $0.93, exceeding the forecasted $0.83, and reported revenue of $1.17 billion, slightly above the anticipated $1.15 billion. This performance represents a 21% year-over-year increase in revenue. Furthermore, CrowdStrike’s annual recurring revenue reached $4.66 billion, surpassing consensus estimates of $4.64 billion and marking a 20% year-over-year growth.

Following these results, several analyst firms adjusted their price targets for CrowdStrike. Goldman Sachs lowered its price target to $492 while maintaining a Buy rating, and DA Davidson also reduced its target to $490, keeping a Buy rating. Piper Sandler adjusted its price target to $450, maintaining a Neutral rating. Meanwhile, Citizens JMP reiterated a Market Outperform rating with a price target of $500. These recent developments highlight the company’s strong financial performance and the varied analyst perspectives on its future.

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