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On Wednesday, Stephens analysts raised the price target for CrowdStrike Holdings (NASDAQ:CRWD) stock to $540 from $450 while maintaining an Overweight rating. Currently trading at $488.76, the stock has surged 42.85% year-to-date, approaching its 52-week high of $491.20. This change follows CrowdStrike’s announcement of its fiscal first-quarter 2026 results, which indicated a strong growth outlook despite a 6% decline in shares after hours.
The analysts noted that the decline in share price was likely due to high expectations ahead of the earnings release. They highlighted CrowdStrike’s solid annual recurring revenue (ARR) performance, with the company achieving 25.94% revenue growth over the last twelve months to $4.14 billion, which supports their confidence in the company’s growth potential and expected acceleration in net ARR in the second half of the year.
Although revenue was slightly below expectations due to temporary headwinds, CrowdStrike’s profitability and cash flow remained strong. Stephens analysts view the company as a leading player in the cybersecurity sector, with opportunities to expand in areas like cloud security, security operations, identity security, exposure management, and artificial intelligence. According to InvestingPro, the company maintains a strong financial health score and is expected to be profitable this year, with 13 additional exclusive insights available to subscribers.
The revised price target is based on an enterprise value/revenue multiple of 23 times the fiscal year 2027 estimate, reflecting the analysts’ optimism about CrowdStrike’s future prospects. For comprehensive valuation analysis and detailed insights, access CrowdStrike’s full Pro Research Report, available exclusively on InvestingPro, along with reports for 1,400+ other top US stocks.
In other recent news, CrowdStrike Holdings reported its financial performance for the first fiscal quarter, aligning its revenue with previous guidance and maintaining its fiscal 2026 target. Despite some revenue challenges due to an outage-related discounting program, the company’s net new annual recurring revenue (NNARR) of $194 million exceeded expectations. UBS analysts noted that CrowdStrike’s guidance for the second quarter indicates over 6% quarter-over-quarter growth, suggesting strong business momentum. DA Davidson analysts raised the price target to $530, highlighting the company’s annual recurring revenue (ARR) of $4.44 billion, which surpassed consensus estimates. Raymond (NSE:RYMD) James analysts also increased their price target to $485, citing optimism about converting free programs into stable contractual revenue. However, BofA Securities downgraded CrowdStrike’s stock rating to neutral from buy, citing concerns about valuation despite strong fundamentals. Meanwhile, Scotiabank (TSX:BNS) analysts raised the price target to $480 but maintained a Sector Perform rating due to potential investor disappointment with in-line results. Overall, analysts are closely monitoring CrowdStrike, with some expressing optimism about its growth prospects and others emphasizing caution regarding its current valuation.
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