Raymond James raises CrowdStrike stock price target to $485 from $390

Published 04/06/2025, 10:50
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On Wednesday, Raymond (NSE:RYMD) James analysts increased the price target for CrowdStrike Holdings (NASDAQ:CRWD) stock to $485 from $390, while maintaining an Outperform rating. The stock, currently trading at $488.76 and near its 52-week high of $491.20, has delivered an impressive 60% return over the past year. This adjustment follows the company’s first fiscal quarter results for 2026, which were consistent with earlier disclosures and exhibited forward guidance surpassing expectations. According to InvestingPro analysis, CrowdStrike appears overvalued at current levels, despite maintaining a "GOOD" financial health score.

The analysts highlighted that CrowdStrike’s revenue and annual recurring revenue (ARR) are currently diverging in the short term. With revenue growing at 29.4% year-over-year and analysts expecting profitability this fiscal year, they are looking to gain confidence from the channel that previously offered free CCP programs, which are expected to eventually convert into more stable contractual revenue.

CrowdStrike’s growth and profitability place it in a unique category, according to the analysts. The company’s performance continues to engage the analysts, although they are awaiting further evidence in the second half of the fiscal year that might prompt a reassessment of the stock’s premium valuation.

The report underscores the analysts’ cautious optimism, as they reiterate their Outperform rating on the stock, reflecting confidence in the company’s future performance despite current challenges.

In other recent news, CrowdStrike Holdings reported a strong financial performance for the fiscal first quarter of 2026, with earnings per share (EPS) of $0.73, surpassing the analysts’ estimate of $0.65. The company’s revenue reached $1.1 billion, in line with projections, marking a 20% year-over-year increase. Additionally, CrowdStrike’s total annual recurring revenue (ARR) hit $4.44 billion, exceeding both analyst and consensus estimates. The company announced a $1 billion share repurchase authorization, reflecting confidence in its long-term strategy and growth prospects. Truist Securities raised the price target for CrowdStrike stock to $500, maintaining a Buy rating, while Citizens JMP also reiterated a Market Outperform rating with the same price target. However, Canaccord Genuity downgraded the stock from a Buy to a Hold, citing a more balanced risk/reward profile, despite raising the price target to $475. CrowdStrike’s Falcon Flex (NASDAQ:FLEX) offering has shown significant success, contributing to substantial deal growth and customer expansion. The company continues to focus on product innovations and strategic initiatives to enhance its market performance.

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