Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Piper Sandler raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $520.00 from $450.00 on Wednesday, while maintaining a Neutral rating on the cybersecurity company’s stock. The new target aligns closely with CrowdStrike’s current trading price of $516.55, with the stock having delivered an impressive 50.97% return year-to-date according to InvestingPro data.
The price target adjustment follows CrowdStrike’s fiscal third-quarter results, which showed broad-based strength across its business lines. The company delivered its first meaningful subscription revenue upside of the year, exceeding analyst expectations by approximately $18 million. CrowdStrike’s revenue growth stands at 22.05% over the last twelve months, though InvestingPro data indicates the company is not yet profitable during this period.
Piper Sandler noted that both net new annual recurring revenue (NNARR) and overall revenue outperformed expectations for the quarter, driven by strength in the company’s emerging portfolio and traditional endpoint security business.
Despite the strong quarterly performance, CrowdStrike’s annual guidance saw only modest adjustments. The company raised the midpoint of its revenue range while increasing the high end by approximately $1 million, which led Piper Sandler to lower its fourth-quarter expectations.
The research firm observed that ARR strength throughout the year has not translated into revenue outperformance or meaningful increases, which it attributed to channel rebates. This factor appears to be behind Piper Sandler’s decision to maintain its Neutral stance despite the substantial price target increase.
In other recent news, CrowdStrike Holdings reported a strong third-quarter fiscal 2026 performance, exceeding FactSet consensus expectations on annual recurring revenue (ARR), earnings per share, and free cash flow. The company achieved a record net new ARR of $265 million, marking a 73% year-over-year growth, surpassing analyst expectations of $238 million. Following these results, Needham raised its price target for CrowdStrike to $575, maintaining a Buy rating, while Cantor Fitzgerald kept its Overweight rating and $590 price target. Additionally, Bernstein SocGen Group increased its price target to $353, maintaining a Market Perform rating, citing a revenue beat of nearly 2% versus guidance. Mizuho continued its Neutral rating with a $540 price target despite the strong quarterly results. Canaccord Genuity also adjusted its price target to $515, maintaining a Hold rating and highlighting the company’s "remarkable" business operations and early expansion within its Flex customer base. These developments reflect a robust period for CrowdStrike, with analysts adjusting their forecasts based on the company’s performance.
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