Truist maintains Buy rating on CrowdStrike stock, keeps $460 target

Published 05/03/2025, 14:44
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On Wednesday, Truist Securities expressed a continued positive outlook on CrowdStrike Holdings (NASDAQ:CRWD) by maintaining a Buy rating and a $460.00 price target. Trading near $390, the stock has shown remarkable strength, gaining over 50% in the past six months. According to InvestingPro analysis, the cybersecurity firm’s performance exceeded expectations, surpassing the upper limits of its guidance across all metrics. The company has successfully navigated past the challenges posed by the IT outage that occurred in July, which appears to be a significant factor in their current success.

CrowdStrike’s recent achievements are attributed to the growing acceptance of its Falcon Flex (NASDAQ:FLEX) offering among customers and an increase in the adoption of additional modules. With impressive revenue growth of 31.35% and a robust gross profit margin of 75%, this has led to the closing of larger deals and a trend of vendor consolidation favoring CrowdStrike. According to the analyst, these developments are indicative of the company’s strong finish to the fiscal year 2025 and its promising outlook moving forward.

The analyst also noted the termination of the Customer Commitment Program (CCP), which is anticipated to further drive the reacceleration of net new Annual Recurring Revenue (ARR) in the second half of 2026 and beyond. This strategic move is expected to bolster CrowdStrike’s growth trajectory and reinforce its competitive position in the market.

The reiteration of the Buy rating and price target by Truist Securities underscores their confidence in CrowdStrike’s business model and future prospects. The company’s robust performance and strategic initiatives are seen as key drivers for its continued success and the achievement of its long-term financial goals.

In other recent news, CrowdStrike Holdings reported strong financial results for its fourth fiscal quarter of 2025, surpassing revenue expectations by 2.6% and exceeding consensus for its non-GAAP Operating Margin by 220 basis points. Despite these achievements, the company’s guidance for fiscal year 2026 is more conservative, projecting approximately 20% growth in top-line revenue and around 15% growth in operating income. Analyst firms have responded with varied outlooks: Bernstein SocGen Group reduced its price target to $347, citing a conservative trajectory for the company’s Net Revenue Retention rate, while DA Davidson increased its target to $415, highlighting the company’s robust Net New Annual Recurring Revenue of $224 million.

Piper Sandler raised its price target to $400, acknowledging CrowdStrike’s resilience and execution capabilities post-service outage. Cantor Fitzgerald maintained a $440 target, noting the company’s strong key performance metrics and potential for acceleration in Annual Recurring Revenue in the latter half of fiscal year 2026. Meanwhile, Citi kept a Buy rating with a $420 price target, recognizing challenges from service outages but expressing confidence in a recovery driven by the FalconFlex strategy and other growth initiatives. These developments reflect a complex landscape for CrowdStrike, with analysts acknowledging both the company’s recent successes and the challenges it faces moving forward.

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