Stifel reiterates Buy rating on CrowdStrike stock ahead of earnings

Published 22/08/2025, 11:26
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Investing.com - Stifel maintained its Buy rating and $495.00 price target on CrowdStrike Holdings (NASDAQ:CRWD) ahead of the company’s fiscal second-quarter 2026 earnings report scheduled for August 27. According to InvestingPro data, analysts’ targets range from $330 to $610, with 31 analysts recently revising their earnings expectations upward for the upcoming period.

The investment firm surveyed 25 CrowdStrike value-added resellers (VARs) regarding their quarterly results and yearly expectations. Survey results indicated performance was generally in-line across the board, with fiscal second-quarter year-over-year growth rates similar to those observed in Stifel’s first-quarter survey.

An overwhelming majority of VARs reported in-line quarterly results and observed a normal end-of-quarter sales push by their CrowdStrike counterparts. Looking forward, a small plurality of VARs expect 10%-20% year-over-year growth for the cybersecurity company.

While most VARs maintained their fiscal year 2026 growth expectations, those who changed their outlook were more likely to raise expectations than lower them by a 3:1 ratio.

The most positive aspect of the survey concerned CrowdStrike’s Flex (NASDAQ:FLEX) offering, with 48% of VARs reporting Flex deals. Among those, 42% have seen customers completely use their Flex commitments already, while another 42% expect a majority of customers to exhaust and renew their Flex commitments ahead of schedule.

In other recent news, CrowdStrike Holdings is preparing for its upcoming earnings report, with Guggenheim maintaining a Neutral rating on the company. Guggenheim expects CrowdStrike to meet consensus estimates for second-quarter total revenue and annual recurring revenue, though it notes potential revenue risks in the latter half of the fiscal year. Meanwhile, Evercore ISI has lowered its price target for CrowdStrike to $425 from $440 and added the company to its tactical underperform list, highlighting the significance of the upcoming earnings report as a "critical show me quarter."

In terms of product developments, CrowdStrike has launched its Falcon Next-Gen Identity Security solution, which aims to protect various identities across hybrid environments through a unified platform. Additionally, the company introduced its AI-powered Signal detection engines at Black Hat USA 2025, designed to detect early-stage threats using self-learning models. Cantor Fitzgerald has reiterated its Overweight rating on CrowdStrike, with a price target of $475, expressing confidence in a potential rebound in the second half of the fiscal year. Cantor Fitzgerald also projects an 8% year-over-year growth in Net New Annual Recurring Revenue for fiscal year 2026, though slightly below consensus estimates.

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