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On Wednesday, Piper Sandler analyst at the firm raised the price target on CrowdStrike Holdings stock (NASDAQ:CRWD) to $400 from the previous $375, while maintaining an Overweight rating. The adjustment follows CrowdStrike’s resilient performance in the aftermath of the July 19th outage. According to InvestingPro data, CrowdStrike’s stock has shown remarkable strength, gaining over 52% in the past six months, with a current market capitalization of $96.1 billion.
The firm noted that CrowdStrike’s annual recurring revenue (ARR) for FY25 was only $160 million less than the pre-incident forecast, despite the significant disruption. The company had been expected to reach an ARR of $4.4 billion before the outage occurred. Additionally, CrowdStrike is slightly raising its revenue guidance for FY26 at the midpoint of the range, which Piper Sandler views as an impressive feat considering the circumstances. InvestingPro analysis reveals the company maintains strong financial health with a 75.24% gross profit margin and robust revenue growth of 31.35% over the last twelve months.
The analyst highlighted the company’s strength in net new annual recurring revenue (NNARR) growth from cloud services, identity verification, and security information and event management (SIEM) as key factors supporting the platform’s value proposition. The fourth quarter showcased CrowdStrike’s resilience and execution capabilities, with performance and guidance exceeding expectations. InvestingPro subscribers can access 12 additional key insights about CrowdStrike’s valuation and growth metrics through the comprehensive Pro Research Report.
The adoption of Falcon Flex (NASDAQ:FLEX), CrowdStrike’s flexible security platform, is anticipated to further benefit the business in the long term. Early indications of this potential are seen in strong module adoption rates and scaling of drivers beyond the core endpoint detection and response (EDR) offering.
In conclusion, Piper Sandler reaffirmed its Overweight rating on CrowdStrike shares and expressed confidence in the company’s trajectory by setting a higher price target of $400.
In other recent news, CrowdStrike Holdings reported robust fourth-quarter earnings, surpassing FactSet consensus estimates in revenue, annual recurring revenue (ARR), earnings per share (EPS), and free cash flow. Despite this strong performance, the company projected more conservative growth for fiscal year 2026, with anticipated revenue growth of approximately 20% and a decline in Non-GAAP EPS due to a significant increase in the projected tax rate. Several analyst firms have weighed in on CrowdStrike’s outlook. Cantor Fitzgerald maintained an Overweight rating with a $440 price target, highlighting the company’s platform adoption and innovation. Citi reiterated a Buy rating with a $420 target, noting challenges in free cash flow projections due to recent incidents and accounting changes. UBS adjusted its price target to $425 from $450 while maintaining a Buy rating, citing strong platform adoption metrics but noting pressures on operating margins. Mizuho (NYSE:MFG) reduced its price target to $410 but kept an Outperform rating, emphasizing the strength of CrowdStrike’s cloud security platform and go-to-market strategy. Lastly, JPMorgan reaffirmed an Overweight rating with a $450 target, predicting a resurgence in growth as CrowdStrike builds on its recent successes.
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