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On Thursday, Stifel analysts, led by Adam Borg, adjusted the price target for CrowdStrike Holdings (NASDAQ:CRWD) shares, increasing it to $480 from the previous $435, while maintaining a "Buy" rating on the stock. Currently trading at $434.74 with a market capitalization of $108.28 billion, InvestingPro analysis suggests the stock is trading above its Fair Value. The revision comes ahead of the company’s expected earnings report for the first quarter of fiscal year 2026, which is scheduled for release on June 3, 2025.
CrowdStrike had previously announced on May 7 that its F1Q26 results would at least meet the previously issued guidance and reaffirmed its full-year guidance for FY26. The company has maintained strong revenue growth of 29.39% over the last twelve months, and InvestingPro data shows an overall financial health score of "GOOD." This announcement coincided with news that the company would be conducting a reduction in force (RIF) affecting 5% of its workforce. For deeper insights into CrowdStrike’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Stifel’s report also included findings from their fourth CrowdStrike-specific survey, which is likely to be the last one focusing on the aftermath of the company’s faulty update from July 19, 2024, as the incident approaches its one-year mark. According to the survey, the percentage of Value-Added Resellers (VARs) that reported growth in their CrowdStrike practices has improved quarter over quarter. However, the percentage of VARs that exceeded or met performance expectations decreased, with a slight increase in those underperforming.
Despite the challenges posed by the faulty update, the survey indicated that its negative effects are lessening on both current deals and the partners’ outlook for 2025. Looking ahead over the next three to five years, the majority of survey respondents believe that CrowdStrike’s reputation, competitive standing, and market growth potential will not be significantly affected by the past update issue.
The anticipation of CrowdStrike’s upcoming earnings report and the positive sentiment reflected in the survey findings contribute to Stifel’s decision to raise the price target for the cybersecurity company’s shares. With a strong year-to-date return of 27.06% and analyst targets ranging from $321 to $500, the market maintains a bullish outlook. As the market awaits the official F1Q26 financial results, the raised price target suggests confidence in CrowdStrike’s performance and long-term prospects. InvestingPro subscribers can access additional insights through 12 more ProTips and extensive financial metrics to make informed investment decisions.
In other recent news, CrowdStrike Holdings announced its intention to cut approximately 500 jobs, representing about 5% of its global workforce, as part of a strategy to streamline operations and enhance efficiency. Despite these reductions, the company will continue to hire for key strategic roles and has reaffirmed its financial guidance for the fiscal year 2026. Mizuho (NYSE:MFG) Securities responded to this development by maintaining an Outperform rating on CrowdStrike and increasing its price target to $425, reflecting confidence in the company’s strategic direction and market position.
KeyBanc Capital Markets also expressed optimism by raising the price target for CrowdStrike to $495 while maintaining an Overweight rating, highlighting the company’s potential for growth in various cybersecurity sectors. Additionally, CrowdStrike appointed Brad Burns as its new Chief Communications Officer, bringing experience from Snowflake (NYSE:SNOW) and Salesforce (NYSE:CRM) to bolster the company’s global communications strategy. However, CrowdStrike is currently under regulatory scrutiny as U.S. prosecutors investigate a $32 million transaction with Carahsoft Technology Corp., which involved cybersecurity software for the IRS that was neither purchased nor received by the agency.
The investigation has extended to former employees and internal records to understand the transaction details and the awareness level among CrowdStrike’s leadership. This scrutiny has raised concerns among investors about potential impacts on the company’s financials and reputation. As the situation unfolds, investors and market analysts will be closely monitoring any developments and their implications for CrowdStrike.
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