CrowdStrike stock maintains Buy rating at DA Davidson after strong quarter

Investing.com - DA Davidson has reiterated its Buy rating and $580.00 price target on CrowdStrike Holdings (NASDAQ:CRWD) following the company’s fiscal third-quarter results. This target represents about 17% upside from current levels, aligning with the broader analyst consensus that remains bullish on the cybersecurity giant, which currently commands a market capitalization of $124.6 billion.

The cybersecurity firm reported a strong quarter with annual recurring revenue (ARR) growth accelerating to 23% year-over-year, up from 20% in the previous quarter. Net new ARR reached $265 million, exceeding consensus estimates of $238 million. This performance is consistent with CrowdStrike’s overall revenue growth of 22.05% over the last twelve months, according to InvestingPro data.

DA Davidson estimates that contributions from recent acquisitions Onum and Pangea were in the low single-digit millions, though the exact amount was not disclosed. The firm noted continued strength in CrowdStrike’s platform and momentum in its Flex and Re-Flex offerings.

For the fourth quarter, CrowdStrike indicated net new ARR of approximately $301 million at the midpoint of guidance, compared to consensus estimates of $290 million, suggesting 23% year-over-year growth to close out the year.

The company reiterated its fiscal year 2027 targets, which include over 20% year-over-year growth in net new ARR. Despite the strong results, shares were indicated slightly lower in after-hours trading, which DA Davidson attributed to "very high expectations."

In other recent news, CrowdStrike Holdings reported impressive fiscal third-quarter results, surpassing expectations across various metrics. The company’s annual recurring revenue (ARR) outlook also exceeded investor expectations, with a notable 73% year-over-year growth in Net-New ARR to $265 million. This strong performance prompted Needham to raise its price target for CrowdStrike to $575, while maintaining a Buy rating. Piper Sandler also adjusted its price target to $520, citing broad-based strength across CrowdStrike’s business lines.

Analyst firms such as TD Cowen and Truist Securities reiterated their Buy ratings, with price targets of $580 and $600, respectively, highlighting strong AI adoption and robust platform demand. RBC Capital maintained its Outperform rating with a $621 price target, noting the accelerated ARR growth. These developments reflect the company’s continued business acceleration and significant traction in non-EDR modules. CrowdStrike’s fiscal third-quarter results and favorable outlook have reinforced confidence among analysts in the company’s growth trajectory.

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