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On Wednesday, analysts at Mizuho (NYSE:MFG) raised the price target for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) stock to $450 from $425, while maintaining a Neutral rating. Currently trading near its 52-week high of $491.20, the stock has delivered impressive returns of 42.85% year-to-date. The decision follows CrowdStrike’s recent earnings report, which showed annual recurring revenue (ARR) of $4.44 billion, marking a 22% year-over-year increase. This figure slightly exceeded both the analyst and market expectations of approximately $4.42 billion. According to InvestingPro analysis, the company appears overvalued at its current market capitalization of $121.74 billion.
Despite the slight ARR beat, CrowdStrike’s revenue was in line with forecasts, with the company maintaining a robust gross profit margin of 74.92%. The company continues to experience strong demand for its Falcon Flex (NASDAQ:FLEX) platform, with numerous customers renewing their contracts after exhausting initial terms. The management’s guidance for the second fiscal quarter suggests continued ARR growth exceeding 20% year-over-year, building on the company’s impressive 29.39% revenue growth over the last twelve months.
Before the earnings report, Mizuho had downgraded CrowdStrike to a Neutral rating. The firm acknowledges the company’s differentiated cloud security platform and its success in expanding beyond traditional endpoint security markets. However, analysts have adopted a more cautious stance due to emerging risk factors and a neutral view on the current valuation’s risk/reward balance.
The revised price target reflects the analysts’ confidence in CrowdStrike’s growth prospects while maintaining a cautious outlook given the current market conditions.
In other recent news, CrowdStrike Holdings has reported its fiscal first quarter 2026 earnings, showcasing a strong financial performance. The company exceeded market expectations with earnings per share of $0.73, surpassing both analysts’ estimates and the consensus forecast. CrowdStrike’s revenue for the quarter reached $1.1 billion, marking a 20% year-over-year increase, although it slightly missed the consensus expectation. The company’s total annual recurring revenue (ARR) rose to $4.44 billion, exceeding both internal and consensus projections.
Furthermore, CrowdStrike announced a $1 billion share repurchase authorization, indicating its confidence in future growth prospects. Analyst firms have responded to these developments with mixed ratings; Raymond (NSE:RYMD) James raised its price target to $485 while maintaining an Outperform rating, and Truist Securities increased its price target to $500, maintaining a Buy rating. Canaccord Genuity, however, downgraded the stock to a Hold but still raised its price target to $475, citing a balanced risk/reward scenario. These recent developments reflect a generally optimistic outlook for CrowdStrike, driven by its strategic initiatives and product innovations.
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