Webull beats Q3 expectations as revenue jumps 55% on strong trading
Investing.com - Jefferies has raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $600.00 from $515.00 while maintaining a Buy rating on the cybersecurity company’s stock. CrowdStrike currently trades at $513.67, having delivered an impressive 50.13% return year-to-date, though InvestingPro analysis suggests the stock is trading above its Fair Value, placing it among more richly valued tech names.
The firm expects CrowdStrike’s fiscal third-quarter net new annual recurring revenue (NNARR) to grow at high single digits quarter-over-quarter. Current consensus estimates of $4.895 billion in annual recurring revenue (ARR), representing 22% year-over-year growth, imply 8% quarter-over-quarter growth in incremental ARR before accounting for churn. With earnings scheduled for December 2 (just 13 days away), investors will soon see if the company can maintain its 23.46% revenue growth trajectory shown in recent quarters.
Jefferies calculates that when factoring in churn, these estimates suggest 47% year-over-year growth in NNARR compared to 8% growth in the second quarter, on a 32-point easier comparison. This effectively embeds a strong acceleration in growth, which should be aided by prior discounting turning into paid subscriptions and continued large Flex deal traction.
Based on intra-quarter checks and survey results showing CrowdStrike as a modestly improved performer relative to plan, Jefferies believes the company can exceed consensus ARR by approximately 40 basis points. This implies 22% year-over-year ARR growth or $257 million in incremental NNARR before accounting for churn.
The firm acknowledges investor concerns about CrowdStrike’s valuation at 55 times consensus calendar year 2027 free cash flow, which may limit share price growth until fiscal year 2027, but still sees potential for one percentage point of ARR upside to the consensus 22% year-over-year growth forecast for fiscal year 2026. InvestingPro data reveals analysts expect the company to be profitable this year with a forecasted EPS of $3.74 for FY2026, a key factor supporting its premium valuation. Subscribers to InvestingPro can access 10+ additional ProTips and a comprehensive Research Report that provides deeper insights into CrowdStrike’s financial health and growth prospects.
In other recent news, CrowdStrike Holdings is set to announce its fiscal third-quarter 2026 earnings, with analysts expressing optimism about the company’s performance. TD Cowen has maintained a Buy rating with a $580 price target, anticipating strong demand and increased traction for CrowdStrike’s modules beyond its core offerings. Cantor Fitzgerald has also raised its price target from $500 to $590, citing positive checks and a strong initial outlook for fiscal year 2027. Stifel increased its price target to $600, based on a survey of value-added resellers showing modest improvements in growth rates. Meanwhile, Berenberg initiated coverage with a Hold rating and a $600 price target, highlighting CrowdStrike’s cloud-native architecture as a market differentiator. In addition to these analyst updates, CrowdStrike has formed a strategic alliance with F5 Inc. to enhance security at the network edge. This collaboration integrates CrowdStrike’s Falcon Sensor and OverWatch capabilities into F5’s BIG-IP solutions, offering enhanced detection and response features. These developments reflect CrowdStrike’s ongoing efforts to expand its market presence and technological capabilities.
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