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On Thursday, Rosenblatt Securities adjusted its outlook for CrowdStrike Holdings (NASDAQ:CRWD), increasing the price target from $385 to $450 while maintaining a Buy rating on the stock. Currently trading at $394.56, the company has demonstrated impressive momentum with a 46.23% return over the past six months, according to InvestingPro data. The firm’s analyst, Catherine Trebnick, cited expectations for the company to meet or slightly exceed the projected 22% year-over-year revenue growth for Q4. This estimate is a slight decrease from the 28.5% growth observed in Q3 and aligns with the forecast for fiscal year 2025.
CrowdStrike’s Annual Recurring Revenue (ARR) is anticipated to grow by 22% year-over-year, which represents a slight deceleration from the 27.4% growth rate in the previous quarter. The projection for Net New ARR stands at $187 million, down 34% from the same period last year, compared to a 32% year-over-year decrease in Q3. The company maintains strong fundamentals with a healthy 75.24% gross profit margin and has demonstrated solid revenue growth of 31.35% over the last twelve months.
The analyst’s outlook is based on conversations with 20 Chief Information Security Officers (CISOs) in January and four resellers, which suggested that the impact of a recent outage was limited, with minimal customer churn. Instead, customers are reportedly adding more modules or extending their contract terms with CrowdStrike. The company is recognized as a security consolidator, with last quarter’s growth driven by strong adoption of new modules like LogScale, Identity Threat Detection, and Cloud Security.
Resellers highlighted several seven-figure deals across the Falcon platform, emphasizing the strong performance of emerging modules. Based on these insights, Rosenblatt is maintaining its ARR and revenue forecast for fiscal year 2026 but has raised its operating margin and pro forma earnings per share (PF EPS) estimates due to improving profitability. Additionally, the firm has introduced its fiscal year 2027 estimates and adjusted its valuation to reflect this extended forecast. The revised price target of $450 reflects these updated expectations and a positive outlook for CrowdStrike’s financial performance. While the company trades at premium multiples with a P/E ratio of 755.93 and an EV/EBITDA of 669.06, InvestingPro analysis indicates the stock is currently overvalued. Investors seeking deeper insights can access 13 additional ProTips and comprehensive valuation metrics through InvestingPro’s detailed research report, which provides expert analysis on CrowdStrike and 1,400+ other top stocks.
In other recent news, CrowdStrike Holdings has been the subject of several notable developments. The company is preparing to release its fourth-quarter earnings report for fiscal year 2025, with analysts from BofA Securities and TD Cowen expressing optimism about its performance. BofA Securities has raised its price target for CrowdStrike to $420, citing expectations of sustained growth and the potential for increased revenue through cross-selling strategies. TD Cowen also increased its price target to $450, highlighting the company’s strong net retention rates and revenue growth momentum.
Additionally, UBS has lifted CrowdStrike’s stock price target to $450, maintaining a Buy rating based on a positive long-term outlook. Meanwhile, CrowdStrike has announced a strategic partnership with Orange Cyberdefense to enhance cybersecurity services for small and medium-sized businesses in Europe and North Africa. However, the company is facing scrutiny from the U.S. Department of Justice and the Securities and Exchange Commission over a $32 million transaction with Carahsoft Technology Corp, which has raised questions about revenue recognition practices.
The investigation, along with the recent sale of shares by Chief Security Officer Henry Shawn, who announced his retirement effective March 31, 2025, adds complexity to the current landscape for investors. These developments highlight the dynamic nature of CrowdStrike’s business environment as the company navigates both growth opportunities and regulatory challenges.
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