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Investing.com - DA Davidson raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $580 from $515 on Tuesday, while maintaining a Buy rating on the cybersecurity company’s stock. This target sits below the analyst high target of $706 but well above the current price of $496.35.
The firm expects CrowdStrike to deliver strong third-quarter results when it reports on December 2, with continued momentum in net new annual recurring revenue (NNARR) likely to boost investor confidence. InvestingPro data shows the company has achieved 23.46% revenue growth over the last twelve months.
DA Davidson highlighted that the company is on track to achieve its targeted 20%+ year-over-year growth in NNARR for fiscal year 2027, reinforcing its positive long-term outlook.
CrowdStrike shares have outperformed the iShares Expanded Tech-Software Sector ETF (IGV) by approximately 23% since the company’s September Investor Day, despite a recent pullback in line with broader market movements. The stock has delivered an impressive 48.12% return year-to-date.
The firm acknowledged that CrowdStrike’s valuation remains "frothy" compared to peers, raising uncertainty about whether the upcoming results will serve as a near-term catalyst for the stock. InvestingPro analysis confirms this assessment, showing CrowdStrike trading at a high Price/Book multiple of 33.27, though analysts predict the company will be profitable this year despite not being profitable over the last twelve months.
In other recent news, CrowdStrike Holdings is preparing to release its fiscal third-quarter earnings report. Analysts from Guggenheim have maintained a Neutral rating on the company, noting potential risks to revenue but acknowledging that annual recurring revenue targets are still within reach. Jefferies has raised its price target for CrowdStrike to $600, maintaining a Buy rating and forecasting high single-digit growth in net new annual recurring revenue. Similarly, TD Cowen expects strong third-quarter results, citing solid demand and increased traction for modules beyond the company’s core offerings, while keeping a Buy rating and a $580 price target. Berenberg has initiated coverage on CrowdStrike with a Hold rating and a $600 price target, highlighting the company’s cloud-native architecture as a market differentiator. Cantor Fitzgerald has also raised its price target to $590, citing positive market checks and a strong outlook for the upcoming fiscal year. These developments reflect analysts’ varied perspectives as they await CrowdStrike’s upcoming earnings announcement.
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