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On Wednesday, DA Davidson analysts raised the price target for CrowdStrike Holdings (NASDAQ:CRWD) stock to $530 from $415, while maintaining a Buy rating. The stock, currently trading at $488.76, sits near its 52-week high of $491.20, having delivered an impressive 60% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with analysts’ targets ranging from $321 to $550. This decision follows the company’s robust performance in the first fiscal quarter, where Annual Recurring Revenue (ARR) reached $4.44 billion, surpassing the consensus estimate of $4.42 billion. The company’s overall revenue growth remains strong at 29.4% year-over-year, with a healthy gross profit margin of 75%. InvestingPro subscribers can access 15+ additional key insights about CrowdStrike’s financial health and growth prospects through the comprehensive Pro Research Report.
The company’s Net New ARR (NNARR) improved significantly, showing a year-over-year decline of 8% compared to a 20% decline in the previous quarter. Management highlighted strong competitive win rates and stable gross retention at approximately 97%. For the second fiscal quarter, NNARR is projected to exceed $205 million, surpassing the consensus of $190 million.
CrowdStrike’s management also raised guidance for fiscal year 2026 operating profit and earnings per share, underscoring the company’s positive outlook. The Falcon Flex (NASDAQ:FLEX) initiative continues to drive longer and larger deals, contributing to the company’s growth trajectory.
Furthermore, the fiscal year 2027 operating margin target was increased to 24%, and the company reiterated its goal of achieving a free cash flow margin exceeding 30%. Despite a 6% decline in after-hours trading due to high market expectations, indications suggest that CrowdStrike has effectively addressed recent challenges.
Overall, DA Davidson analysts remain optimistic about CrowdStrike’s future prospects, as evidenced by the increased price target and maintained Buy rating. While the company currently operates with moderate debt levels and maintains strong liquidity, InvestingPro data indicates the stock is trading at elevated valuation multiples, suggesting investors should carefully consider their entry points.
In other recent news, CrowdStrike Holdings reported its first-quarter fiscal 2026 earnings, with annual recurring revenue (ARR) reaching $4.436 billion, a 21.6% increase year-over-year. This figure surpassed consensus estimates and highlighted strong net new ARR additions of $194 million. Despite these results, the company’s second-quarter revenue guidance fell below expectations, partly due to partner-related program amortizations. CrowdStrike maintained its fiscal 2026 revenue outlook at $4.775 billion and raised its operating income guidance by 2.5%. Analysts from Jefferies and BTIG raised their price targets to $520, maintaining Buy ratings, while Stifel increased its target to $495. JPMorgan reiterated an Overweight rating with a $500 price target, despite mixed quarterly outcomes. Wolfe Research maintained a Peerperform rating, noting the lightest revenue beat since CrowdStrike’s IPO. The company announced a $1 billion share repurchase program and increased its fiscal 2027 non-GAAP operating profitability expectations to at least 24%.
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