CrowdStrike stock price target lowered to $450 by BMO Capital

Published 28/08/2025, 12:18
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Investing.com - BMO Capital lowered its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $450.00 from $460.00 on Thursday, while maintaining an Outperform rating on the cybersecurity company’s stock. According to InvestingPro data, analyst targets for CrowdStrike range from $330 to $610, with the stock currently trading near $423.

The firm adjusted its outlook following CrowdStrike’s July quarter earnings report, which prompted BMO to increase its net new Annual Recurring Revenue (ARR) estimates by $35 million for fiscal year 2026 and $72 million for fiscal year 2027. The company has demonstrated strong growth momentum, with revenue increasing 26% over the last twelve months to $4.1 billion.

Despite the higher ARR projections, BMO Capital expressed uncertainty about how these figures will translate into fiscal year 2027 revenues and noted questions about the potential upside or downside to their ARR and revenue estimates. InvestingPro analysis shows 31 analysts have revised their earnings upwards for the upcoming period, with detailed insights available in the Pro Research Report covering this high-growth cybersecurity leader.

The stock was trading at approximately $405 in after-hours trading when the analyst note was released, representing potential upside to BMO’s new target price.

BMO Capital cited the "strength of CrowdStrike’s robust platform" as a key factor in maintaining its Outperform rating despite the price target reduction.

In other recent news, CrowdStrike Holdings reported its second-quarter fiscal 2026 earnings, with earnings per share of $0.93, surpassing both Citizens JMP’s estimate of $0.83 and the consensus forecast. The company’s revenue reached $1,169.0 million, exceeding Citizens JMP’s projection of $1,151.2 million and the consensus estimate of $1,149.6 million, marking a 21% year-over-year increase. Despite these positive results, several firms have adjusted their price targets for CrowdStrike. Evercore ISI lowered its price target to $405, citing mixed outlooks due to third-quarter guidance and lower-than-expected fourth-quarter revenue. BTIG reduced its target to $489, maintaining a Buy rating but noting investor concerns over the limited revenue outlook. Goldman Sachs also lowered its target to $492, despite recognizing a 10% beat on net new annual recurring revenue expectations. DA Davidson set a new target of $490, acknowledging a 20% year-over-year growth in annual recurring revenue. Citizens JMP reiterated a Market Outperform rating with a $500 price target, reflecting confidence in the company’s performance.

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