Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Stephens raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $590.00 from $525.00 on Thursday, while maintaining an Overweight rating on the cybersecurity company’s stock. The stock, currently trading at $509.95, has delivered an impressive 71% return over the past year and is approaching its 52-week high of $517.98. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The price target increase represents a 12.4% boost and follows Stephens’ detailed review of its financial model for CrowdStrike, which included adjustments to account for ARR-to-subscription revenue conversion headwinds. The company maintains strong fundamentals with a healthy 74% gross margin and robust revenue growth of 23% in the last twelve months.
Stephens made slight adjustments to CrowdStrike’s estimates, reducing its third-quarter fiscal 2026 revenue projection while slightly increasing its fourth-quarter fiscal 2026 forecast, resulting in no net change to its full-year fiscal 2026 revenue estimate.
The firm also adopted a more conservative approach to fiscal 2027 ARR-to-revenue conversion assumptions, leading to modest decreases in its revenue, non-GAAP EPS, and free cash flow forecasts for that year.
The new $590 price target is based on an enterprise value multiple of 23 times Stephens’ fiscal 2027 ARR estimate, with the firm describing its adjustments as a "model clean-up exercise" that does not change its positive fundamental view on CrowdStrike. With a market capitalization of $128 billion and strong liquidity metrics, including a current ratio of 1.88, the company maintains a solid financial position. Discover more detailed insights and 11 additional ProTips with a subscription to InvestingPro, including exclusive access to the comprehensive Pro Research Report.
In other recent news, CrowdStrike Holdings has seen several updates that may interest investors. TD Cowen has increased its price target for CrowdStrike to $580, citing a record pipeline and strong execution, while maintaining a Buy rating. Similarly, UBS has also raised its price target to $580, highlighting positive financial updates and increased customer engagement with the Falcon platform. Citizens JMP has adjusted its price target to $550, maintaining a Market Outperform rating, which reflects a higher valuation multiple based on future revenue estimates.
In a separate development, CrowdStrike has appointed Amjad Hussain as chief resilience officer, a new role aimed at enhancing operational excellence. Hussain brings over 25 years of experience from major tech companies, including AWS. Bernstein has reiterated its Market Perform rating with a price target of $343, following the company’s Fal.Con event, which was positively received by investors. These recent developments underscore the ongoing interest and strategic changes at CrowdStrike.
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