UBS lifts CrowdStrike stock price target to $450 from $396

On Wednesday, UBS analyst Fatima Boolani increased the price target for CrowdStrike Holdings (NASDAQ:CRWD) to $450, up from the previous target of $396, while maintaining a Buy rating on the company’s shares. According to InvestingPro data, the stock currently trades at significant premiums across various metrics, including a P/E ratio of 756x. Boolani’s optimistic stance is based on a positive long-term outlook for the company, despite acknowledging a more mixed situation in the near term.

CrowdStrike’s stock has experienced a decline of 12.35% over the past week, which Boolani attributes to a broader rotation out of momentum stocks, as evidenced by the 9% drop in the IGV, an index tracking software companies. Despite this recent pullback, InvestingPro data shows the stock has delivered an impressive 48.4% return over the past six months. The analyst remains confident in CrowdStrike’s fundamentals and believes that any short-term weakness is an opportunity for investors to buy.

Investor conversations have revealed some concerns regarding potential risks to fiscal year 2026 revenue and free cash flow estimates, as well as the company’s exposure to U.S. Federal business. Nonetheless, the general sentiment remains positive, particularly if CrowdStrike can reaffirm its long-term business model and its increasing involvement in areas such as cloud and Security Information and Event Management (SIEM).

Boolani’s research indicates an improving sentiment towards CrowdStrike’s business, with positive feedback from channel checks conducted in January and February. These checks have shown strength in both the company’s expansion business and its acquisition of new logos. InvestingPro analysis reveals strong fundamentals, with a current ratio of 1.86 and revenue growth of 31.35% in the last twelve months, supporting the positive outlook.

Heading into the quarterly earnings report scheduled for March 4, Boolani suggests that CrowdStrike’s discounting programs could lead to a range of outcomes from an income statement perspective. She believes that a significant beat in fourth-quarter net new annual recurring revenue (NNARR) and a fiscal year 2026 NNARR framework that supports second-half reacceleration would be sufficient to maintain investor confidence. Investors seeking deeper insights into CrowdStrike’s valuation and growth metrics can access comprehensive analysis through the Pro Research Report, available exclusively on InvestingPro.

In other recent news, CrowdStrike Holdings has announced a strategic partnership with Orange Cyberdefense to enhance cybersecurity services in Europe and North Africa. This collaboration will integrate the CrowdStrike Falcon platform, focusing on small and medium-sized businesses and addressing the growing threat of cyberattacks. Meanwhile, analysts at TD Cowen have raised CrowdStrike’s price target to $450, maintaining a Buy rating, citing strong revenue growth momentum and effective upselling strategies. Similarly, BofA Securities also increased its price target to $420, highlighting expectations for the company’s upcoming fourth-quarter earnings report.

The U.S. Department of Justice and the Securities and Exchange Commission are investigating CrowdStrike over a $32 million transaction with Carahsoft Technology Corp related to the IRS, raising questions about revenue recognition practices. This scrutiny comes amid news of the Chief Security Officer, Shawn Henry, planning to retire in March 2025, transitioning to an Executive Advisor role. Despite these challenges, CrowdStrike remains a key player in cybersecurity, with ongoing efforts to consolidate security solutions and expand its market presence. Investors are advised to keep a close watch on the company’s financial updates and regulatory developments.

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