CrowdStrike Stock Target Raised on Earnings Upside Expectation

CrowdStrike's stock (NASDAQ:CRWD) is on the radar, with analysts taking a closer look ahead of its December 2 earnings. Barclays have today hiked its price target to $610, expecting stronger earnings than the street at large.

Barclays analyst Saket Kalia increased the firm's price target on CrowdStrike stock to $610 from $515, while maintaining an “Overweight” rating, reflecting optimism regarding anticipated net new annual recurring revenue (ARR). Kalia's analysis suggests a potential upside in Q3 net new ARR, projecting between $255 million and $260 million, exceeding the firm’s initial model of $239 million. This revision is based on strong market checks, indicating robust demand for CrowdStrike's cybersecurity solutions.

The adjustment from Barclays aligns with a broader trend of analysts revising their price targets for CrowdStrike in anticipation of the upcoming earnings report. Wells Fargo analyst Andrew Nowinski raised the price target to $550 from $430, while Rosenblatt Securities analyst Catharine Trebnick increased the target to $515 from $450. Similarly, Cantor Fitzgerald analyst Jonathan Ruykhaver adjusted the price target to $475 from $440, and UBS analyst Roger Boyd increased the target to $545 from $425. All these firms maintain a positive rating on the stock, indicating confidence in its future performance.

CrowdStrike’s financial performance has been strong, demonstrating a 23.46% revenue growth over the last twelve months and a 66.78% return over the past year. This growth is underpinned by the company’s differentiated cloud security platform and an effective go-to-market strategy, enabling it to capitalize on the expanding cybersecurity market. The company's strong market position allows it to secure new customers and expand relationships with existing ones, driving ARR growth.

The series of analyst upgrades reflects a bullish sentiment towards CrowdStrike, fueled by expectations of robust earnings and continued ARR growth. Investors are optimistic about the company's ability to leverage the increasing demand for cloud-based cybersecurity solutions. CrowdStrike's strategic positioning in this higher-growth segment of the security market positions it favorably for sustained success.