Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, UBS analyst Roger Boyd increased the price target on CrowdStrike Holdings stock (NASDAQ:CRWD), currently trading at $461.85, to $545 from the previous $425, while reiterating a Buy rating on the shares. According to InvestingPro data, the stock is trading near its 52-week high of $474.23, suggesting strong momentum despite appearing overvalued based on Fair Value analysis. The adjustment reflects a positive outlook despite a challenging first quarter setup.
Boyd’s commentary acknowledged CrowdStrike’s impressive year-to-date performance, which has seen the stock rise by 37.02% according to InvestingPro data, compared to the 2% increase of the IGV index. With earnings due in 5 days, and revenue growing at 29.39%, Boyd does not view recent developments, such as workforce reductions and the Carahsoft/IRS deal, as worrisome. Instead, he suggests that these moves could set up the company for sustainable growth in Security Information and Event Management (SIEM) as well as potential margin improvements.
The analyst pointed out that while macro-level commentary from peers like Palo Alto Networks (NASDAQ:PANW), Okta (NASDAQ:OKTA), and SentinelOne (NYSE:S) has been less than ideal, and first-quarter feedback from partners was somewhat mixed, the expectations for CrowdStrike to achieve over 30% growth in second-half net new annual recurring revenue (NNARR) remain intact. Boyd sees any potential first-quarter weakness as an opportunity for investors to buy, noting that partners did not dismiss the possibility of a "first-quarter hangover" following the end of discount programs in the fourth quarter of fiscal year 2025 but remained optimistic about their sales pipelines.
Looking ahead, Boyd remains confident in CrowdStrike’s long-term prospects, considering the company to be one of the strongest fundamental stories within the cybersecurity sector. This view is supported by InvestingPro’s GOOD financial health rating of 2.75, with particularly strong growth and price momentum scores. The raised price target reflects this confidence and suggests a continued bullish stance on the stock’s future performance. InvestingPro subscribers can access 13 additional investment tips and a comprehensive Pro Research Report for deeper insights into CrowdStrike’s valuation and growth prospects.
In other recent news, CrowdStrike Holdings Inc. has experienced a series of significant developments. S&P Global Ratings has revised its outlook for CrowdStrike to positive from stable, affirming the ’BB+’ issuer credit rating and raising the issue level rating on its $750 million notes. This change reflects CrowdStrike’s strong operating performance and revenue growth, with annual recurring revenue projected to reach $5 billion in the coming year. Stifel analysts have increased the price target for CrowdStrike shares to $480, maintaining a "Buy" rating, ahead of the company’s expected first-quarter earnings report for fiscal year 2026. KeyBanc Capital Markets also raised its price target to $495, maintaining an Overweight rating, citing confidence in CrowdStrike’s growth strategy and market opportunities.
Additionally, CrowdStrike has appointed Brad Burns as its new Chief Communications Officer to oversee global communications strategy amid its expansion in cybersecurity. However, the company is currently under regulatory scrutiny by US prosecutors and regulators concerning a $32 million transaction with Carahsoft Technology Corp. This investigation has raised questions about the nature of the deal, as the IRS did not purchase or receive the products involved. As the situation unfolds, the market will be closely observing the potential impacts on CrowdStrike’s financials and reputation.
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