Mizuho raises CrowdStrike stock target to $425, maintains Outperform

Published 07/05/2025, 16:16
© Reuters

On Wednesday, Mizuho (NYSE:MFG) Securities maintained its Outperform rating on CrowdStrike Holdings (NASDAQ:CRWD) and increased the price target to $425 from $410. According to InvestingPro data, the stock has shown remarkable momentum with a 34% return over the past six months, though current analysis suggests the stock is trading above its Fair Value. This adjustment followed CrowdStrike’s announcement that it would be laying off approximately 5% of its workforce, which equates to around 500 employees. The cybersecurity firm’s management stated that despite the workforce reduction, they would continue to recruit for key strategic roles within the company. The company maintains a healthy financial position with a current ratio of 1.77, indicating strong liquidity to meet its short-term obligations.

The layoffs are part of CrowdStrike’s strategy to focus on profitable scaling of its operations. In conjunction with the announcement of the job cuts, CrowdStrike also provided an update on its financial outlook. The company expects its financial results for the first quarter ending in April to meet or exceed previous guidance, and it reaffirmed its full-year financial outlook. InvestingPro analysis reveals impressive revenue growth of 29.4% over the last twelve months, with analysts expecting profitability this year. Get access to 13+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

Mizuho analyst Gregg Moskowitz commented on the developments, noting the unexpected nature of the workforce reduction but expressing confidence in the company’s leadership. "We believe this is a very thoughtful and pragmatic management team, and that it is highly focused on profitably scaling the business," Moskowitz stated. The company’s gross profit margin stands at an impressive 74.9%, demonstrating strong operational efficiency.

The analyst also emphasized the strength of CrowdStrike’s cloud security platform, its go-to-market strategy, and its successful expansion beyond traditional endpoint security markets. The slight adjustment in the price target to $425 reflects Mizuho’s continued confidence in the company’s differentiated offerings and market position.

CrowdStrike’s decision to streamline its workforce while maintaining its hiring in strategic areas suggests an emphasis on operational efficiency and targeted growth within the evolving cybersecurity landscape.

In other recent news, CrowdStrike has announced a reduction of its global workforce by 5%, equating to approximately 500 jobs, as part of its efforts to streamline operations. Despite these cuts, the company reaffirmed its guidance for the fiscal year 2026 and projected that its first-quarter results would align with or surpass previous forecasts. In a strategic move, CrowdStrike has also expanded its cybersecurity capabilities by launching the Falcon Privileged Access module, which aims to enhance identity security across hybrid environments. This module is part of the Falcon Identity Protection suite and integrates with existing platform capabilities to offer comprehensive identity security solutions.

Additionally, CrowdStrike has deepened its partnership with ExtraHop to address shadow AI risks, providing enhanced capabilities for Security Operations Center teams to detect unauthorized AI activities. Cantor Fitzgerald has maintained its Overweight rating on CrowdStrike stock, with a price target of $440, reflecting confidence in the company’s growth prospects and its focus on identity-based threat protection. In terms of executive compensation, CrowdStrike’s CEO, George Kurtz, is set to receive a new compensation package for fiscal year 2026, which includes an annual base salary of $1.1 million and a target incentive compensation award of 135%.

These developments highlight CrowdStrike’s ongoing commitment to innovation and strategic growth in the cybersecurity sector, as the company continues to adapt to evolving cyber threats and expand its product offerings.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.