Cantor maintains $440 target on CrowdStrike stock post-earnings

On Wednesday, CrowdStrike Holdings (NASDAQ:CRWD) received a reiterated Overweight rating and a $440.00 price target from Cantor Fitzgerald, following the cybersecurity company’s fourth-quarter earnings report. The results exceeded FactSet consensus estimates in several key areas, including revenue, annual recurring revenue (ARR), earnings per share (EPS), and free cash flow. The company, currently valued at $96.1 billion, has shown impressive momentum with a 52% surge in stock price over the past six months. According to InvestingPro analysis, while the company appears overvalued relative to its Fair Value, it maintains strong financial health with a current ratio of 1.86. However, the net new annual recurring revenue (NNARR) figures, while surpassing consensus, did not meet some of the more optimistic expectations.

CrowdStrike’s financial performance for the fourth quarter of fiscal year 2025 demonstrated robust growth, with the company outperforming market expectations in multiple financial metrics. The company has maintained impressive revenue growth of 31.35% over the last twelve months, supported by a strong gross profit margin of 75.24%. For deeper insights into CrowdStrike’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to 12+ additional ProTips and detailed metrics. Despite this strong performance, the company’s guidance for fiscal year 2026 suggests more conservative growth, with projections of approximately 20% growth in top-line revenue and around 15% growth in operating income. These targets align with FactSet consensus for revenue but fall slightly short for operating income.

The company has also forecasted a year-over-year decline of about 14% in Non-GAAP EPS for fiscal year 2026. This anticipated decrease is attributed to a new projected Non-GAAP tax rate of 22.5%, a significant increase from the 2% rate in fiscal year 2025. This change in tax rate is expected to impact earnings, despite the company’s strong performance in other areas. The stock currently trades at a P/E ratio of 757.16, reflecting high growth expectations from investors. A detailed analysis of CrowdStrike’s valuation metrics and future growth potential is available in the comprehensive Pro Research Report on InvestingPro, part of their coverage of 1,400+ top US stocks.

Cantor Fitzgerald’s analysis highlighted CrowdStrike’s impressive key performance metrics for the quarter. The research firm remains positive on the company’s broader platform adoption, driven by its Falcon Flex (NASDAQ:FLEX) offering. Cantor also cited CrowdStrike’s leading innovation and effective solutions as factors that support strong customer loyalty. Looking ahead, the firm anticipates an acceleration in ARR in the second half of fiscal year 2026.

The reiterated Overweight rating and price target reflect Cantor Fitzgerald’s continued confidence in CrowdStrike’s market position and future growth prospects. The company’s earnings report and subsequent guidance provide a comprehensive view of its financial health and strategic direction for the coming fiscal year.

In other recent news, CrowdStrike Holdings reported its fiscal year 2025 results, showing an annual recurring revenue (ARR) of $4.24 billion, which exceeded expectations from both Mizuho (NYSE:MFG) and the Street. Despite this strong performance, guidance for fiscal year 2026 suggests some caution, with expectations of lower free cash flow until fiscal year 2027. Analysts from UBS and Mizuho adjusted their price targets for CrowdStrike to $425 and $410, respectively, while maintaining positive ratings on the stock. UBS noted a strong adoption of CrowdStrike’s platform, particularly in cloud and SIEM ARR, despite some concerns about operating margins.

JPMorgan maintained a $450 price target, highlighting CrowdStrike’s strong fourth-quarter results, which surpassed expectations in revenue, profitability, and free cash flow. The firm also emphasized the significant contribution from emerging products like the Exposure Management product. Citi analysts continued to support a Buy rating with a $420 price target, noting the company’s challenges with service outages but expressing confidence in a recovery later in the year.

Citizens JMP reaffirmed its Market Outperform rating with a $400 price target, praising CrowdStrike’s management for their response to past challenges and highlighting the company’s growth in key product areas. The analyst also pointed to the company’s innovation in artificial intelligence as a positive factor. Overall, while some analysts have adjusted their price targets, the consensus remains optimistic about CrowdStrike’s future performance and market position.

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