Cantor Fitzgerald boosts CrowdStrike stock outlook amid expectations for 2H FY26 recovery

Published 21/11/2024, 14:00
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On Thursday, Cantor Fitzgerald showed confidence in CrowdStrike Holdings (NASDAQ:CRWD) by increasing the stock's price target to $370 from the previous $350, while keeping an Overweight rating on the shares.

The firm's decision comes amidst a challenging backdrop where a global outage has been impacting demand and the generation of new business pipelines. Despite these conditions, the majority of partners surveyed by the firm anticipate a rebound in net new Annual Recurring Revenue (ARR) and revenue in the second half of fiscal year 2026.

Cantor Fitzgerald's optimism is also based on several key factors including the expected broader adoption of CrowdStrike's platform, lower-than-anticipated customer churn rates, and the potential for ARR to accelerate as customers renew their care packages at higher rates.

The analyst handling the coverage noted, "We are bullish on broader platform adoption, lower-than-expected churn, and potential ARR acceleration as recent customer care packages renew at higher run-rates." This sentiment underlines the belief that CrowdStrike's current challenges are temporary and that its growth trajectory remains strong.

CrowdStrike, known for its cybersecurity solutions, continues to navigate through the current global outage with strategic moves that could potentially strengthen its market position in the future. The raised price target reflects the analyst's confidence in the company's resilience and its ability to capitalize on upcoming opportunities.

In other recent news, CrowdStrike Holdings has been in the spotlight due to a variety of developments. The cybersecurity firm's Q3 2025 earnings report, which follows a challenging period marked by a faulty update in July 2024, is highly anticipated by analysts. Financial services companies Stifel and Truist Securities have both raised their stock price targets for CrowdStrike, maintaining 'Buy' ratings.

Despite facing a lawsuit from Delta Air Lines (NYSE:DAL) over a significant global outage attributed to CrowdStrike's faulty update, the company has garnered positive attention from analysts. Wedbush Securities has initiated coverage on CrowdStrike with an Outperform rating, while TD Cowen reiterated its Buy rating, forecasting robust growth by the second half of 2026.

In addition, CrowdStrike has formed a strategic alliance with Plurilock Security Inc. to strengthen protection for critical infrastructure. These developments provide a glimpse into the company's current market position and recent activities.

InvestingPro Insights

Recent data from InvestingPro reinforces Cantor Fitzgerald's bullish outlook on CrowdStrike. The company's revenue growth remains robust, with a 33.07% increase in the last twelve months as of Q2 2025, reaching $3.52 billion. This aligns with the analyst's expectations of potential ARR acceleration and broader platform adoption.

InvestingPro Tips highlight CrowdStrike's strong financial position, noting that its liquid assets exceed short-term obligations, and it operates with a moderate level of debt. This financial stability could be crucial as the company navigates through the current global outage and positions itself for future growth.

The market seems to share the optimism, with CrowdStrike showing a strong return of 67.55% over the last year. However, investors should note that the stock is trading at high valuation multiples across various metrics, including earnings, EBIT, and revenue.

For readers interested in a deeper dive into CrowdStrike's financials and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis to inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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