CrowdStrike stock maintains Buy rating at Roth/MKM ahead of earnings

Investing.com - Roth/MKM has reiterated its Buy rating and $510.00 price target on CrowdStrike Holdings (NASDAQ:CRWD) following positive channel checks for the cybersecurity firm. The target represents modest upside from CrowdStrike’s current trading price of $504.13, with the cybersecurity giant commanding a substantial $126.5 billion market capitalization. InvestingPro analysis suggests the stock is trading above its Fair Value, though analysts have set targets as high as $706.

The research firm reported that CrowdStrike was "the least aggressive in terms of special pricing" during October, with no calendar-based discounts offered in the quarter. Feedback was positive regarding the company’s Next-gen SIEM, Falcon Privileged Access, and its partnerships with Okta and Zscaler.

Investor sentiment appears balanced ahead of earnings, with buyside expectations for Net New Annual Recurring Revenue (NNARR) ranging from $255 million to $265 million, with most investors expecting approximately $258 million to $260 million. Revenue expectations for the third fiscal quarter of 2026 range from $1,236 million to $1,235 million. InvestingPro data shows CrowdStrike has maintained strong revenue growth of 23.46% over the last twelve months, with total revenue reaching $4.34 billion.

Roth/MKM projects NNARR could reach approximately $260 million, noting that CrowdStrike’s NNARR beat in the first fiscal quarter of 2026 was approximately $19 million and about $16 million in the second fiscal quarter. The firm believes an organic NNARR of $255 million to $260 million "appears doable."

Companies that have already reported earnings, including Palo Alto Networks and Zscaler, did not report any impact from the federal government shutdown, alleviating previous investor concerns about potential effects on CrowdStrike’s October quarter results. With CrowdStrike’s next earnings report scheduled for December 2, 2025, InvestingPro Tips indicate that net income is expected to grow this year, with analysts predicting the company will be profitable with a forecasted EPS of $3.74 for FY2026. Discover more insights in CrowdStrike’s comprehensive Pro Research Report, available among 1,400+ top stocks with in-depth analysis.

In other recent news, CrowdStrike has been active with several strategic moves. The company has been selected for Hewlett Packard Enterprise’s Unleash AI partner program, integrating its Falcon platform into HPE’s Private Cloud AI solution. This collaboration aims to enhance security across hybrid and multi-cloud environments. Additionally, CrowdStrike unveiled new Cloud Detection and Response capabilities at an AWS event, featuring a real-time detection engine that processes cloud logs swiftly.

In leadership developments, Andy Nowinski has been appointed as Vice President of Investor Relations and Strategic Finance, where he will lead investor relations strategies. On the financial front, KeyBanc has raised its price target for CrowdStrike to $570, citing the company’s strong strategic position and its potential to deliver an advanced Security Operations Center strategy. Evercore ISI maintained its In Line rating and $430 price target for CrowdStrike, noting slight improvements in pipeline momentum and growth expectations ahead of the upcoming earnings report. These developments reflect CrowdStrike’s ongoing efforts to strengthen its market position and strategic partnerships.

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