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Investing.com - Rosenblatt Securities lowered its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $490 from $515 while maintaining a Buy rating on the cybersecurity company. The stock, currently trading at $422.61 with a market capitalization of $105.6 billion, has delivered an impressive 60% return over the past year. According to InvestingPro data, 31 analysts have recently revised their earnings estimates upward for the upcoming period.
The adjustment follows CrowdStrike’s recent quarterly results, which beat expectations across key metrics but was accompanied by conservative guidance that tempered investor enthusiasm. The company’s shares fell approximately 4% in after-hours trading despite the strong performance. InvestingPro analysis indicates the stock is currently trading above its Fair Value, though the company maintains strong fundamentals with a healthy current ratio of 1.85 and robust gross margins of 74.5%.
CrowdStrike reported total revenue that exceeded expectations by approximately $19 million, while demonstrating cost discipline that contributed to a $0.10 beat on the bottom line. The company achieved a new Q2 record by adding $221 million in net new annual recurring revenue (NNARR), with annual recurring revenue (ARR) growth posted at 20%. This performance aligns with InvestingPro’s analysis, which shows impressive revenue growth of 26% over the last twelve months. Get access to 10+ additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.
Management raised its fiscal year 2026 outlook for revenue, operating margin, and non-GAAP earnings per share above analyst estimates, though the increase was slightly less than the magnitude of the quarterly beat. This conservative approach to guidance appears to have dampened immediate investor reaction despite the strong results.
Rosenblatt cited CrowdStrike’s strong competitive position, innovative product suite, and commitment to AI-driven solutions as key factors supporting its continued Buy rating, despite the modest reduction in price target.
In other recent news, CrowdStrike Holdings delivered its fiscal second-quarter 2026 results, which exceeded expectations in several key areas. The company’s net new annual recurring revenue (NNARR) reached $221 million, surpassing the consensus expectation of $206 million, showing re-acceleration earlier than anticipated. Despite these strong results, several firms have adjusted their price targets for CrowdStrike. Stifel reiterated a Buy rating with a price target of $495, while BMO Capital maintained an Outperform rating but lowered its price target to $450. Evercore ISI also reduced its price target to $405, citing a mixed outlook due to third-quarter guidance and implied fourth-quarter revenue falling below expectations. BTIG adjusted its price target to $489, maintaining a Buy rating, and noted concerns over the limited flow-through of quarterly revenue upside to the full-year outlook. Goldman Sachs lowered its target to $492, highlighting that earnings per share and revenue both exceeded estimates. These developments reflect a cautious yet optimistic view from analysts regarding CrowdStrike’s future performance.
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