Canaccord raises CrowdStrike stock target to $420, maintains Buy

On Tuesday, Canaccord Genuity updated its outlook on CrowdStrike Holdings (NASDAQ:CRWD), increasing the price target to $420 from the previous $370, while retaining a Buy rating on the stock. The firm’s analyst, Michael Walkley, provided insights into the company’s trajectory, citing several factors contributing to the positive assessment. According to InvestingPro data, the stock has shown remarkable momentum with a 47.59% return over the past six months, though current analysis suggests the stock is trading above its Fair Value.

Walkley’s commentary highlighted the company’s engagement with customers and the expansion of its product platform, including the introduction of Flex (NASDAQ:FLEX) packaging initiatives. The shift towards longer-term contracts was also noted as a reason for optimism regarding future growth acceleration, particularly in the second half of fiscal year 2026. This optimism appears well-founded, as InvestingPro data shows strong revenue growth of 31.35% over the last twelve months, with a healthy gross profit margin of 75.24%. Despite some uncertainty about pricing dynamics for large customers upon renewal, the overall sentiment from clients is a desire to continue and even expand their use of CrowdStrike’s services.

The analyst pointed out that CrowdStrike has been focusing on strengthening relationships with existing customers since July and is now starting to be seen as a more robust security platform and potential business partner by prospective customers. Walkley suggested that evidence supporting this view is likely to become more apparent in the coming quarters, a sign of the company’s effective efforts. The company’s financial health appears solid, with a current ratio of 1.86 indicating strong liquidity. For deeper insights into CrowdStrike’s financial health and growth prospects, including 12 additional ProTips, check out the comprehensive analysis available on InvestingPro.

In terms of valuation, Walkley acknowledged that the current price leaves little room for error but still sees opportunity in CrowdStrike shares at these levels. The new price target of $420 reflects an 18x enterprise value/sales multiple based on Canaccord Genuity’s calendar year 2026 estimates, a slight adjustment from the previous 19x multiple on the calendar year 2025 estimate. This revision underscores the firm’s confidence in CrowdStrike’s growth prospects and market position, supported by the company’s strong profitability indicators and robust revenue growth trajectory.

In other recent news, CrowdStrike Holdings has been the focus of several analyst upgrades and strategic developments. Cantor Fitzgerald raised its price target for CrowdStrike to $440, noting a quicker recovery from a previous global outage and potential upselling opportunities. Similarly, Rosenblatt Securities increased its target to $450, citing expectations for the company to meet its projected 22% year-over-year revenue growth for the fourth quarter. UBS also adjusted its price target to $450, maintaining a positive long-term outlook despite some near-term uncertainties. BofA Securities revised its target to $420, anticipating that CrowdStrike’s upcoming earnings report may align with or exceed Wall Street estimates, highlighting the significance of the company’s contract renewal cycle. In strategic moves, CrowdStrike announced a partnership with Orange Cyberdefense to enhance their Security Operations Center-as-a-Service and Managed Detection and Response offerings. This collaboration aims to provide advanced AI-native cybersecurity solutions, particularly targeting small and medium-sized businesses in Europe and North Africa. These developments reflect CrowdStrike’s ongoing efforts to strengthen its market position and expand its reach in the cybersecurity sector.

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