Street Calls of the Week
Investing.com - Needham has raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $535.00 from $475.00 while maintaining a Buy rating on the cybersecurity company’s stock. The new target aligns with the broader analyst sentiment, as 38 analysts have recently revised their earnings estimates upward. According to InvestingPro data, analyst targets currently range from $330 to $610, reflecting strong market confidence in this $111.8B market cap company.
The price target increase follows Needham’s attendance at CrowdStrike’s annual Fal.Con conference analyst session on Wednesday, where the cybersecurity firm outlined its growth projections.
CrowdStrike management revealed a target of over 20% Net-New Annual Recurring Revenue (ARR) growth for fiscal year 2027, significantly higher than the approximately 12% year-over-year growth that sell-side analysts had previously modeled.
This marks the first time CrowdStrike has provided an out-year Net-New ARR forecast, which Needham interprets as a sign of management’s increased visibility and confidence in the business trajectory.
CrowdStrike also announced a long-term target of $20 billion in ARR by fiscal year 2036, with platform breadth, customer consolidation, and traction with its Flex and Re-Flex offerings identified as key drivers behind the company’s growth projections.
In other recent news, CrowdStrike Holdings made significant announcements at its Fal.Con event, which drew over 8,000 attendees. The company revealed its acquisition of Pangea, a firm specializing in AI security, showcasing its commitment to expanding its product offerings. Following the event, several analysts adjusted their price targets for CrowdStrike. Cantor Fitzgerald raised its target to $500, citing a strong outlook and maintaining an Overweight rating. Similarly, Jefferies increased its price target to $515, emphasizing the company’s expanding portfolio in artificial intelligence and identity security. Morgan Stanley also adjusted its target to $475, highlighting the benefits of platformization amid rising AI risks. Mizuho matched this target increase to $475, despite describing the conference as "relatively uneventful," but noted the investor meeting provided significant insights. Guggenheim, however, maintained a Neutral rating on the stock post-event. These developments reflect CrowdStrike’s strategic focus and the varied analyst perspectives on its financial prospects.
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