JPMorgan maintains CrowdStrike stock with $450 target

On Wednesday, JPMorgan analyst Brian Essex reaffirmed an Overweight rating and a $450.00 price target on CrowdStrike Holdings (NASDAQ:CRWD), which currently trades at $390.16. Essex’s endorsement follows CrowdStrike’s fourth-quarter results, which surpassed expectations in terms of revenue, profitability, and free cash flow (FCF). The company’s performance was bolstered by strong engagement with emerging products, notably the Exposure Management product, which made a significant contribution. According to InvestingPro data, CrowdStrike maintains strong financial health with a GOOD overall score, supported by robust liquidity metrics and impressive growth momentum.

CrowdStrike’s fiscal year 2026 guidance, although cautious, suggests the company is laying the groundwork for a return to its previous pattern of exceeding expectations and subsequently raising them. The company’s strong foundation is evident in its impressive 31.35% revenue growth and healthy 75.24% gross profit margin, as reported by InvestingPro. The cessation of the CrowdStrike Complete (CCP) initiative is anticipated to accelerate annual recurring revenue (ARR) and future revenue growth.

The firm’s robust performance with Falcon Flex (NASDAQ:FLEX), contributing over $1 billion in deals this quarter, along with expansion within its existing customer base, traction with next-generation Security Information and Event Management (SIEM), solid partner contributions, and strong renewal rates, are expected to drive a resurgence in growth. While the first half of fiscal year 2026 may still face some challenges, acceleration is expected in the second half.

Looking further ahead, CrowdStrike anticipates improved profitability in fiscal year 2027, targeting non-GAAP operating margins of 23% and free cash flow margins exceeding 30%. Based on these projections and the current financial results, JPMorgan has adjusted its estimates and price target for CrowdStrike. Essex notes the evidence of CrowdStrike’s success in leveraging incentives to speed up market penetration, consolidate market share onto its platform, and establish itself as a leading best-in-class platform. With a market capitalization of $96.1 billion and a strong 52.15% price return over the past six months, CrowdStrike demonstrates significant momentum. For deeper insights into CrowdStrike’s valuation and growth potential, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, CrowdStrike Holdings has seen several adjustments in analyst price targets following its latest financial results. DA Davidson increased its price target to $415, citing robust net new annual recurring revenue (NNARR) of $224 million, which exceeded consensus estimates. However, the company’s forward guidance did not meet market expectations, with projections for the first fiscal quarter’s NNARR slightly below consensus. Jefferies also adjusted its price target to $425, down from $450, despite a year-over-year ARR growth of 23% that slightly surpassed consensus estimates. Concerns were raised about near-term free cash flow uncertainties and challenges related to the Chinese Communist Party.

Raymond (NSE:RYMD) James raised its price target to $390, noting that while NNARR was slightly below expectations, forecasts for the first quarter indicate potential growth acceleration. Citizens JMP maintained a $400 price target, highlighting CrowdStrike’s recovery from a previous outage and ongoing growth in key product areas. BMO Capital increased its price target to $405, maintaining an Outperform rating, despite adjustments to FY26 financial projections due to recent challenges. Analysts from these firms expressed varying levels of confidence in CrowdStrike’s growth trajectory and market positioning, with some emphasizing the potential for acceleration in the latter half of the fiscal year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.