BMO retains $315 target on CrowdStrike, sees leader in security

On Friday, BMO Capital maintained its optimistic stance on CrowdStrike Holdings (NASDAQ:CRWD), reiterating an Outperform rating and a $315.00 price target for the cybersecurity firm's stock. Following CrowdStrike's Fal.Con 2024 user group and analyst event, the firm's analyst provided insights on the company's performance and future expectations.

During the event, CrowdStrike's management discussed the impact of the July outage on its Annual Recurring Revenue (ARR) and revenue projections. The analyst from BMO Capital indicated that, based on these comments, there might be a need to adjust ARR and revenue estimates downward. Additionally, it was noted that volatility in these estimates could continue for several quarters until the company provides its fiscal year 2026 guidance.

Despite the potential for revised estimates and ongoing volatility, BMO Capital expressed confidence in CrowdStrike's position in the cybersecurity market. The firm anticipates that security spending will increasingly be concentrated with leading companies like CrowdStrike.

BMO Capital has decided not to alter its own estimates at this time, citing the belief in the company's continued leadership in the security sector. The firm's analyst emphasized their commitment to the Outperform rating, signaling a positive outlook on CrowdStrike's stock performance.

In other recent news, CrowdStrike Holdings has seen a flurry of activity from analysts. TD Cowen maintained its Buy rating on CrowdStrike with a steadfast price target of $380.00, citing the company's growth prospects and strategic value.

Scotiabank reiterated its Sector Perform rating with a steady price target of $265.00, while Truist Securities held its Buy rating with a consistent price target of $325.00. CapitalOne also maintained its Overweight rating with a steady price target of $298.00.

In terms of earnings and revenue, CrowdStrike exceeded expectations in its second fiscal quarter in terms of annual recurring revenue (ARR), revenue, and non-GAAP earnings per share. However, the guidance for the third fiscal quarter and fiscal year 2025 fell short of consensus estimates. The company's management reiterated their long-term ARR goal of $10 billion by the fiscal year 2031.

CrowdStrike also launched several strategic initiatives, such as CrowdStrike Financial Services and established partnerships with Dazz and 1Password to enhance cloud security measures. These efforts are expected to contribute to an increase in ARR over time.

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