CrowdStrike Holdings Inc. (NASDAQ: CRWD) has ploughed a strong path this year, with it's stock price moving to new highs, in spite of its controversial outage in 2024.
While the demand for robust cybersecurity solutions remains strong, the company does have its challenges. Revised revenue forecasts, and the ever-present need to innovate in a rapidly evolving threat environment has seen the odd stumble, but by and large this is on an upward curve.
CrowdStrike's stock has been a significant outperformer on the NASDAQ in which it sits, with it being seen as a company for ‘all seasons', with firm's reluctant to cut cybersecurity spend even in the most difficult of times.
YOUR CAPITAL IS AT RISK
CrowdStrike Share Price Targets
Analysts have set a 12-month price target for CrowdStrike with an average expectation of $472.45, ranging from a high of $550.00 to a low of $330.00.
The current consensus average target suggests a mild downside from the most recent trading price.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading CrowdStrike shares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
CrowdStrike – The Basics Driving The Business
At its core, CrowdStrike specializes in cloud-delivered endpoint protection. Its Falcon platform offers a suite of services encompassing threat intelligence, endpoint detection and response (EDR), and vulnerability management.
By leveraging a cloud-native architecture and artificial intelligence, CrowdStrike aims to provide comprehensive and proactive protection against a wide range of cyber threats. The company has built a reputation for its rapid deployment capabilities, scalability, and effectiveness in identifying and neutralizing sophisticated attacks. These attributes have attracted a diverse clientele, ranging from small businesses to large enterprises and government agencies.
CrowdStrike's business model centers around subscription-based services, providing recurring revenue streams and fostering long-term customer relationships. This model has been instrumental in driving growth and establishing a strong market presence.
The company continuously invests in research and development to enhance its Falcon platform and expand its product portfolio, ensuring it remains at the forefront of cybersecurity innovation. This commitment to innovation is evident in the recent Raptor update, which integrates Extended Detection and Response (XDR) capabilities with generative AI.
This enhancement allows for natural language queries in multiple languages and facilitates real-time collaboration among security analysts through a Collaborative Incident Command Center, ultimately boosting the platform's efficacy and user experience.
