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Investing.com - RBC Capital has reiterated an Outperform rating on CrowdStrike Holdings (NASDAQ:CRWD) with a price target of $510.00, citing the company’s favorable annual recurring revenue (ARR) outlook. The cybersecurity giant, now valued at $107 billion, has seen its stock surge nearly 60% over the past year, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The cybersecurity firm delivered what RBC described as "good results" against mixed investor expectations, with net new annual recurring revenue (NNARR) accelerating back to growth sooner than anticipated. This optimism is shared broadly across Wall Street, with 31 analysts recently revising their earnings estimates upward, according to InvestingPro data.
RBC noted that CrowdStrike’s guidance now calls for over 40% NNARR growth in the second half of fiscal 2026 and more than 22% ARR growth for the full fiscal year 2026.
The investment firm expressed confidence in second-half acceleration and momentum continuing into fiscal 2027, pointing to the combination of early NNARR acceleration and success with the company’s Re-Flex program.
Despite the positive outlook, RBC acknowledged that questions will persist regarding the divergence between ARR and subscription revenue as the CrowdStrike Cloud Platform (CCP) impacts contra revenue.
In other recent news, CrowdStrike Holdings reported its fiscal second-quarter results, which showed a solid performance with key metrics exceeding expectations. The company achieved a notable beat on Annual Recurring Revenue (ARR) by $15 million, although this was below the trailing twelve-month average beat. Revenue and margins also surpassed projections for the quarter. Despite this, CrowdStrike’s year-over-year subscription growth declined to 20.1%, leading Bernstein to lower its price target to $343, citing underwhelming guidance. Cantor Fitzgerald maintained its Overweight rating with a $475 price target, noting that conservative guidance metrics affected market reactions. Rosenblatt Securities also adjusted its price target to $490, maintaining a Buy rating despite the tempered investor enthusiasm due to guidance. Stifel reiterated a Buy rating with a $495 price target, highlighting the company’s better-than-expected performance and re-acceleration in net new annual recurring revenue. These developments reflect the mixed reactions from analysts, emphasizing the importance of guidance in shaping investor sentiment.
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