Stifel cuts CrowdStrike price target to $435, maintains Buy

Published 05/03/2025, 16:02
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On Wednesday, Stifel analysts adjusted their outlook on CrowdStrike Holdings (NASDAQ:CRWD), now valued at $85.11 billion, following the company’s recent earnings report. The price target for CrowdStrike stock was lowered to $435 from the previous $475, though Stifel sustained a Buy rating on the shares. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with analysts maintaining targets ranging from $301 to $475. The move comes after CrowdStrike reported quarterly results that surpassed expectations, showcasing a 25% year-over-year revenue increase, which beat both Stifel’s and the broader market’s projections of 22%. InvestingPro data reveals the company’s impressive 31.35% revenue growth over the last twelve months, with a healthy gross profit margin of 75.24%.

The net new annual recurring revenue (NNARR) also exceeded forecasts, reaching $224 million against Stifel’s and the market consensus estimates of $199 million and $192 million, respectively. The positive performance was attributed to robust execution and growing adoption of CrowdStrike’s Falcon Flex (NASDAQ:FLEX) and Customer Commitment Package offerings.

Despite the strong performance metrics, CrowdStrike is still navigating the aftermath of a faulty update. Analysts acknowledge that the company has been proactive in strengthening customer and partner relationships, as well as its broader ecosystem. The company maintains strong financial health with a current ratio of 1.86, indicating solid liquidity to meet short-term obligations. The forward-looking guidance for fiscal year 2026 suggests that revenue may align with the current consensus, but profitability could be impacted by continued investments, one-time effects from the faulty update, and challenges specific to CrowdStrike Financial Services.

In after-hours trading, CrowdStrike shares faced pressure due to these profitability concerns. However, Stifel analysts expressed optimism as management anticipates a rebound in NNARR, operating margin, and free cash flow margin in the second half of fiscal 2026. The stock has demonstrated strong momentum with a 52.15% return over the past six months. For deeper insights into CrowdStrike’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, CrowdStrike Holdings has reported significant developments that are capturing the attention of investors. The company showcased strong fourth-quarter results, with a 25% revenue growth and a 23% increase in Annual Recurring Revenue (ARR). CrowdStrike’s total fiscal year 2025 contract value is expected to surpass $6 billion, marking a 40% year-over-year growth, according to RBC Capital Markets. Despite these strong financial results, RBC adjusted its price target for CrowdStrike to $460, citing changes in tax methodology affecting earnings per share guidance.

TD Cowen maintained a Buy rating with a $450 price target, emphasizing the company’s robust year-end performance and potential for top-line growth. Meanwhile, Truist Securities also reiterated a Buy rating, keeping the price target at $460, highlighting the company’s success in overcoming challenges from a previous IT outage. However, Bernstein SocGen Group reduced its price target to $347, acknowledging the impact of a service outage and a dip in the Net Revenue Retention rate to 112%.

DA Davidson raised its price target to $415, maintaining a Buy rating, following CrowdStrike’s impressive Net New Annual Recurring Revenue of $224 million. The company’s guidance for the first quarter of fiscal year 2026 did not meet market expectations, but management remains optimistic about performance in the latter half of the year. CrowdStrike anticipates achieving $10 billion in ARR by fiscal year 2031, with significant margin expansions projected in the coming years.

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