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Investing.com - Guggenheim maintained its Neutral rating on CrowdStrike Holdings (NASDAQ:CRWD) ahead of the cybersecurity company’s fiscal third-quarter earnings report scheduled for Tuesday, December 2, after market close. InvestingPro data shows the stock has taken a significant hit, declining 7.38% over the past week, as investors position themselves ahead of the upcoming earnings announcement.
The research firm noted potential risks to CrowdStrike’s fiscal third-quarter and FY26 total revenue, though it believes annual recurring revenue (ARR) targets remain achievable for both periods. Field checks and pipeline expectations continue to trend positively, with partners confirming CrowdStrike remains the category leader. Despite not being profitable over the last twelve months, analysts tracked by InvestingPro forecast the company will achieve profitability this fiscal year with an EPS of $3.75.
Guggenheim highlighted increasing traction with Falcon Flex, CrowdStrike’s flexible licensing model, which is beginning to gain momentum. The firm published an accompanying analysis examining how Falcon Flex could boost growth by leveraging hyperscaler expansion, particularly through Oracle, which is supporting ongoing AI infrastructure buildout. This growth initiative comes as CrowdStrike maintains strong revenue growth of 23.46% over the last twelve months.
The research note expressed optimism about CrowdStrike’s ability to monetize Falcon Flex beyond its core Cloud Protection platform, partly enabled by the company’s relatively new financing options. Guggenheim also identified significant growth opportunity in the U.S. Federal government vertical, though it estimates this currently represents less than 1% of plausible new ARR for the quarter. With a market capitalization of $123.14 billion, CrowdStrike has substantial resources to pursue these growth avenues.
Despite these positive factors, Guggenheim maintained its Neutral stance, citing CrowdStrike’s current valuation at 24 times enterprise value to next-twelve-months subscription revenue and over 100 times enterprise value to next-twelve-months free cash flow, which it described as among the highest in its coverage universe. This assessment aligns with InvestingPro analysis, which indicates the stock is currently trading above its Fair Value, with a Price/Book ratio of 32.78. Investors seeking deeper insights can access CrowdStrike’s comprehensive Pro Research Report, one of 1,400+ detailed analyses available exclusively to subscribers.
In other recent news, CrowdStrike Holdings has been the focus of several analyst updates. Jefferies has raised its price target for CrowdStrike to $600, maintaining a Buy rating, citing expectations of strong growth in net new annual recurring revenue. This aligns with current estimates of $4.895 billion in annual recurring revenue, suggesting an 8% quarter-over-quarter growth. Similarly, Stifel has also increased its price target to $600, based on a survey of value-added resellers that indicated modest improvements in growth rates. Cantor Fitzgerald raised its target to $590, highlighting positive momentum and a strong fiscal year 2027 outlook. TD Cowen reiterated its Buy rating with a $580 price target, expecting solid fiscal third-quarter results driven by demand for modules beyond core offerings. Berenberg initiated coverage with a Hold rating and a $600 price target, noting CrowdStrike’s cloud-native architecture as a market differentiator. These updates reflect a general consensus of positive expectations for CrowdStrike’s upcoming earnings and growth potential.
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