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On Wednesday, UBS analysts reiterated their Buy rating for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) stock, maintaining a price target of $545.00. Trading near its 52-week high of $491.20, the stock has delivered impressive returns with a 42.85% gain year-to-date. The decision comes after CrowdStrike’s first-quarter results showed strong performance in several key areas.
CrowdStrike reported a net new annual recurring revenue (NNARR) of $194 million for the first quarter, surpassing street expectations by 11%. The company’s guidance for the second quarter NNARR indicates over 6% quarter-over-quarter growth, which also exceeded market forecasts. Additionally, free cash flow was reported to be significantly ahead of estimates, contributing to the company’s GOOD financial health score according to InvestingPro analysis.
Despite some near-term revenue challenges due to an outage-related discounting program, which resulted in first-quarter revenue slightly below the midpoint of guidance and a second-quarter forecast slightly below consensus, UBS analysts remain optimistic. They noted that the implied second-half revenue guidance suggests growth acceleration through the year’s end.
The analysts highlighted the company’s strong business momentum, particularly with a year-over-year growth of over 100% in its Security Information and Event Management (SIEM) segment. They emphasized that, although valuation is a key debate among investors, CrowdStrike’s accelerating topline growth of 29.39% and faster free cash flow growth justify a premium valuation. InvestingPro analysis reveals 13 additional key insights about CrowdStrike’s valuation and growth prospects in their comprehensive Pro Research Report.
In other recent news, CrowdStrike Holdings reported strong financial results for the first fiscal quarter of 2026, with Annual Recurring Revenue (ARR) reaching $4.44 billion, surpassing the consensus estimate of $4.42 billion. The company also raised its guidance for fiscal year 2026 operating profit and earnings per share, indicating a positive outlook. Jefferies analysts increased their price target for CrowdStrike stock to $520 from $410, maintaining a Buy rating. Similarly, DA Davidson raised its price target to $530 from $415, also with a Buy rating, following the company’s robust performance. Raymond (NSE:RYMD) James adjusted its price target to $485 from $390, citing optimism about the company’s potential to convert free programs into contractual revenue. JPMorgan maintained an Overweight rating with a $500 price target, despite some mixed outcomes in recent quarterly results. BTIG reiterated a Buy rating and maintained a $520 price target, noting the company’s solid growth outlook. CrowdStrike announced a $1 billion share repurchase program and increased its expectations for non-GAAP operating profitability in fiscal year 2027.
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