RBC Capital reiterates Outperform rating on CrowdStrike stock at $621 price target

Investing.com - RBC Capital has reiterated its Outperform rating and $621.00 price target on CrowdStrike Holdings (NASDAQ:CRWD) following the company’s recent financial performance. The target represents potential upside from CrowdStrike’s current trading price of $516.55, though InvestingPro analysis suggests the stock may be trading above its Fair Value.

The cybersecurity firm delivered strong results and a favorable annual recurring revenue (ARR) outlook that exceeded investor expectations, according to RBC Capital. The firm noted that ARR accelerated more than anticipated in the latest reporting period. CrowdStrike’s revenue reached $4.57 billion with 22% year-over-year growth, despite not being profitable over the last twelve months according to InvestingPro data.

CrowdStrike’s guidance now projects more than 50% growth in net new annual recurring revenue (NNAAR) for the second half of fiscal year 2026, and over 20% NNAAR growth in fiscal year 2027 from the higher base.

RBC Capital identified Re-Flex and Next Generation Security Information and Event Management (NG SIEM) as key drivers for the company’s momentum. These factors contribute to the firm’s confidence in CrowdStrike’s continued growth into fiscal year 2027.

The research firm also suggested that CrowdStrike could see additional growth from the beginning of agentic AI monetization, positioning the company as one of RBC Capital’s top security consolidation ideas.

In other recent news, CrowdStrike Holdings reported strong fiscal third-quarter results, exceeding analyst expectations in several key areas. The company delivered a notable subscription revenue upside, surpassing projections by approximately $18 million. Annual recurring revenue (ARR) reached $4.92 billion, marking a 23% year-over-year increase and surpassing expectations of $4.9 billion. Net-New Annual Recurring Revenue (NNARR) was particularly impressive, with a 73% year-over-year growth to $265 million, far exceeding the consensus estimate of $238 million.

In response to these results, several analyst firms adjusted their price targets for CrowdStrike. Piper Sandler raised its price target to $520 while maintaining a Neutral rating. Needham increased its target to $575 and upheld a Buy rating, citing the company’s raised growth assumptions for the second half of fiscal 2026. Cantor Fitzgerald maintained an Overweight rating with a $590 price target, while Bernstein raised its target to $353, maintaining a Market Perform rating. Despite the strong quarter, Mizuho reiterated a Neutral rating with a $540 price target. These developments reflect a positive outlook from analysts based on CrowdStrike’s robust performance.

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