On Friday, Mizuho (NYSE:MFG) Securities sustained its positive stance on shares of CrowdStrike Holdings (NASDAQ:CRWD), raising the cybersecurity firm's price target to $385 from the previous $375. The firm continues to endorse an Outperform rating on the stock.
According to InvestingPro data, CrowdStrike's stock has delivered an impressive 52.38% return over the past year, though current analysis suggests the stock is trading above its Fair Value.
The revision follows a recent investor event with CrowdStrike's CFO Burt Podbere. During the discussion, Podbere highlighted the success of the company's Falcon Flex (NASDAQ:FLEX) program and conveyed strong confidence in CrowdStrike's ability to recover and strengthen following a significant IT outage.
The company's strong financial health is reflected in its "GREAT" overall score on InvestingPro, with robust revenue growth of 31.35% in the last twelve months.
CrowdStrike's cloud security platform was praised for its distinctiveness, and its go-to-market (GTM) strategy was noted as unparalleled. The company's expansion beyond traditional endpoint security markets was also recognized as particularly successful, supported by an impressive gross profit margin of 75.24%.
With these factors in mind, Mizuho's analysis suggests CrowdStrike's free cash flow (FCF) margins are expected to remain around 30%. Discover 15 additional key insights about CrowdStrike with an InvestingPro subscription, including detailed valuation metrics and growth indicators.
The adjustment in the price target reflects a broader appreciation in comparable company multiples, indicating a positive market sentiment toward firms similar to CrowdStrike.
The firm's analysis underscores a robust financial outlook for CrowdStrike, despite the challenges posed by the IT outage and the current environment of heightened uncertainty in the tech sector. The company currently trades at a P/E ratio of 698.41, reflecting high growth expectations from investors.
In other recent news, CrowdStrike Holdings reported strong third-quarter results, surpassing expectations in annual recurring revenue (ARR) by $22 million. The cybersecurity firm also saw beats in revenue, billings, remaining performance obligations (RPO), and margins. Despite this, the stock experienced a decline due to a one-time removal of $26 million in ARR from a non-recurring transaction with a federal distributor.
Analyst firms such as KeyBanc, TD Cowen, and Needham maintained positive ratings on CrowdStrike, with KeyBanc reiterating an Overweight rating and a $395 price target, TD Cowen reaffirming a Buy rating with a $380 target, and Needham raising its price target to $420.
Analysts have highlighted that CrowdStrike's Falcon Flex offering and broader platform adoption are expected to contribute to sustained success, despite potential challenges such as the lingering effects of a July outage incident.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.