RBC cuts CrowdStrike stock price target to $460, keeps Outperform

On Wednesday, RBC Capital Markets adjusted its outlook on CrowdStrike Holdings (NASDAQ:CRWD), reducing the price target to $460 from the previous $495, while reiterating an Outperform rating on the company’s shares. The decision came after CrowdStrike reported strong financial results, with revenue guidance meeting expectations. The company, currently trading at $390.16, has demonstrated robust growth with a 31.35% year-over-year revenue increase. According to InvestingPro analysis, while the stock appears overvalued at current levels, it maintains a strong financial health score of 2.8 (GOOD). However, a change in tax methodology negatively impacted the earnings per share (EPS) guidance.

Matthew Hedberg of RBC Capital highlighted the company’s total contract value (TCV) for the fiscal year 2025, which is expected to surpass $6 billion, marking a year-over-year growth of over 40%. This metric is particularly significant as it represents the entire business booked during the year. With a market capitalization of $96.1 billion and strong liquidity metrics showing current assets exceeding short-term obligations, InvestingPro data reveals 12 additional key insights about CrowdStrike’s financial position. Hedberg noted that this TCV figure is a new disclosure from CrowdStrike and should position the company favorably for fiscal year 2026 and beyond.

The analyst expressed optimism about CrowdStrike’s future, anticipating an acceleration in net new annual recurring revenue (NNARR) in the second half of fiscal year 2026. According to Hedberg, both the company’s estimates and its stock are likely to trend upward. Despite this positive outlook, the price target adjustment was attributed to a compression in peer multiples, which led to a more conservative valuation.

CrowdStrike’s financial performance and the newly disclosed TCV are seen as indicators of the company’s potential for sustained growth. RBC Capital’s revised price target reflects a balance between the strong business fundamentals and the broader market conditions affecting the company’s sector.

In other recent news, CrowdStrike Holdings has reported a strong fourth fiscal quarter for 2025, surpassing revenue expectations by 2.6% and exceeding consensus on its non-GAAP Operating Margin by 220 basis points. Despite the positive results, analysts at Bernstein SocGen Group adjusted their price target for CrowdStrike to $347, citing ongoing service outage repercussions, but maintained an Outperform rating. Meanwhile, DA Davidson raised their price target to $415, highlighting CrowdStrike’s impressive Net New Annual Recurring Revenue of $224 million, which significantly exceeded consensus estimates. Piper Sandler also increased their price target to $400, noting the company’s resilience post-outage and its robust annual recurring revenue performance. Cantor Fitzgerald reiterated a $440 price target, praising CrowdStrike’s overall financial performance while noting more conservative growth guidance for fiscal year 2026. Truist Securities maintained a Buy rating with a $460 target, attributing CrowdStrike’s success to its Falcon Flex (NASDAQ:FLEX) offering and strategic initiatives like terminating the Customer Commitment Program. These developments reflect a mix of cautious optimism and confidence from various analysts in CrowdStrike’s long-term growth prospects.

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