Raymond James lifts CrowdStrike price target to $390

On Wednesday, Raymond (NSE:RYMD) James analyst Adam Tindle updated the price target for CrowdStrike Holdings (NASDAQ:CRWD) stock to $390, an increase from the previous $360 target, while maintaining an Outperform rating on the cybersecurity firm’s shares. The stock, currently trading at $390.16, has shown remarkable momentum with a 52.15% return over the past six months. According to InvestingPro analysis, CrowdStrike’s current valuation suggests the stock is trading above its Fair Value.

The adjustment follows CrowdStrike’s fourth quarter fiscal year 2025 results, which showed that net new annual recurring revenue (NNARR) was slightly below expectations. However, forecasts for the first quarter NNARR are surpassing initial estimates, indicating potential for growth acceleration in the second half of the fiscal year. Tindle notes that the end of a non-recurring customer commitment incentive program marks a pivotal moment for CrowdStrike as it enters fiscal year 2026. The company maintains strong fundamentals with a 75.24% gross profit margin and impressive revenue growth of 31.35% over the last twelve months. InvestingPro data reveals 10+ additional key metrics and insights available for subscribers.

Tindle expressed confidence in CrowdStrike’s ability to accelerate through the year, citing the company’s proven track record of execution. Despite acknowledging the complexities ahead, particularly at the company’s high valuation, Tindle remains optimistic. He highlighted the historical evidence of module adoption as a reason to maintain a positive outlook, suggesting that the incentive program has successfully expanded the top of the sales funnel, leading to high-margin upsells upon renewal. InvestingPro’s Financial Health Score of 2.8 (GOOD) supports this positive outlook, with the company demonstrating strong growth potential and solid financial metrics.

CrowdStrike’s net revenue retention (NRR) rate is currently around 112%, down from approximately 120% before the incentive program. A return to the previous NRR level is seen as crucial for sustaining elite growth rates. According to Tindle, the combination of accelerating growth and incremental improvements in profitability are attractive traits for software stocks that typically outperform the market.

The analyst’s commentary underscores the importance of CrowdStrike’s growth trajectory and operational efficiency as the company moves forward without the incentive program that has expanded its customer base.

In other recent news, CrowdStrike Holdings has been the focus of several analyst updates following its latest financial results. Jefferies adjusted its price target for CrowdStrike to $425, down from $450, while maintaining a Buy rating. This decision was influenced by CrowdStrike’s fourth-quarter report, which revealed a 23% year-over-year growth in annual recurring revenue (ARR), slightly above consensus estimates, despite uncertainties regarding free cash flow and operating income guidance. DA Davidson, on the other hand, increased its price target to $415 from $395, also maintaining a Buy rating, citing a strong net new annual recurring revenue (NNARR) performance that surpassed expectations.

BMO Capital Markets raised its price target for CrowdStrike to $405 from $380, keeping an Outperform rating. The firm noted adjustments in financial projections, particularly in ARR and free cash flow estimates for fiscal year 2026, but maintained confidence in CrowdStrike’s long-term prospects. Evercore ISI lifted its price target to $450 from $400, retaining an Outperform rating, following a strong quarter that exceeded expectations and suggested potential growth acceleration in the latter half of the year. Lastly, KeyBanc Capital Markets reduced its price target to $450 from $480, maintaining an Overweight rating, acknowledging CrowdStrike’s robust revenue and earnings while noting mixed fiscal year 2026 guidance due to planned investments in platform resiliency and marketing. These recent developments highlight the varied analyst perspectives on CrowdStrike’s financial health and growth trajectory.

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