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On Wednesday, Jefferies analysts increased the price target for CrowdStrike Holdings stock (NASDAQ: NASDAQ:CRWD) to $520 from $410, while maintaining a Buy rating. The stock currently trades at $488.76, near its 52-week high of $491.20, reflecting strong momentum with a 60% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
CrowdStrike’s annual recurring revenue (ARR) growth for the first fiscal quarter was 21.6% year-over-year, slightly below the investor expectation of 22%. While subscription revenue faced challenges, InvestingPro data shows impressive overall revenue growth of 29.39% in the last twelve months. The company maintains a GOOD financial health score, with 15+ additional ProTips available to subscribers.
Despite these setbacks, CrowdStrike’s non-GAAP operating income and free cash flow exceeded expectations. The company also raised its guidance, with management expressing confidence in free cash flow visibility, driven by large flexible deals.
Jefferies analysts remain optimistic about CrowdStrike’s market position, anticipating an acceleration in net new annual recurring revenue in the second half of fiscal year 2026. They project a 22% year-over-year ARR growth for fiscal year 2026, believing that further upside is achievable.
In other recent news, CrowdStrike Holdings reported strong financial results for the first quarter of fiscal year 2026, with its annual recurring revenue (ARR) reaching $4.436 billion, a 21.6% increase from the previous year. This figure exceeded both BTIG’s and the consensus estimates. The company maintained its fiscal year 2026 revenue outlook at $4.775 billion, reflecting a 21% year-over-year growth. Analysts from BTIG, Stifel, TD Cowen, and RBC Capital all maintained a positive outlook, with BTIG and Stifel reiterating Buy ratings and RBC Capital upgrading its price target to $510. Despite some revenue challenges related to partner dynamics, CrowdStrike’s Falcon Flex (NASDAQ:FLEX) program showed significant momentum, contributing to a 124% year-over-year increase in total contract value.
TD Cowen and Stifel analysts raised their price targets to $500 and $495, respectively, citing optimism for re-acceleration in ARR growth and platform expansion. Wolfe Research, however, maintained a Peerperform rating, noting that the revenue beat was the lightest since CrowdStrike’s IPO. The company also announced a $1 billion share buyback program, aiming to enhance shareholder value as shares reached historical highs. Looking forward, management anticipates sequential improvements in net new ARR and expressed confidence in accelerating growth in the second half of the fiscal year.
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