On Wednesday, Stifel, a financial services company, raised the stock price target for CrowdStrike Holdings (NASDAQ:CRWD) to $375 from the previous $300 while maintaining a 'Buy' rating on the stock. The adjustment comes ahead of CrowdStrike's third-quarter fiscal year 2025 earnings report, which is scheduled for release after the market closes on November 26, followed by a conference call at 5 PM ET.
The price target increase is based on information gathered from two sets of detailed checks conducted by Stifel after CrowdStrike's October quarter. The first set involved a survey of 26 respondents specific to CrowdStrike, and the second consisted of conversations with five Tier-1 Value-Added Resellers/System Integrators (VARs/SIs).
These checks aimed to understand the impact of CrowdStrike's faulty update from July 2024 on the company's recent quarter, its pipeline and guidance for the fiscal year 2025, competitive positioning, growth opportunities, and potential legal liabilities.
According to the findings, while there are varying trends across different dimensions such as year-over-year growth for the third quarter and actual results compared to expectations, the consensus indicates a diminishing impact from the faulty update.
Customers are reportedly adopting Customer Commitment Packages, which seems to be mitigating the situation. Moreover, while SentinelOne (NYSE:S) has been identified as the primary beneficiary of CrowdStrike's misstep, the advantage it has gained is not as significant as anticipated.
The analysis by Stifel suggests that despite the challenges faced due to the July 2024 update, CrowdStrike is on track to recover and strengthen its position in the market. The firm's checks show an increasing confidence in CrowdStrike's medium-term market opportunities, indicating a positive outlook for the cybersecurity company's future performance.
In other recent news, CrowdStrike Holdings has been the center of attention due to several key developments. The company's third-quarter fiscal year 2025 earnings report is eagerly awaited by analysts, especially after overcoming a Global IT outage that deferred an estimated $60 million in transactions.
Despite this setback, CrowdStrike managed to surpass market expectations. Truist Securities has shown confidence in the cybersecurity firm, upgrading its price target from $325.00 to $375.00 and maintaining a Buy rating.
Simultaneously, CrowdStrike is facing legal action from Delta Air Lines (NYSE:DAL) due to a significant global outage in July, attributed to a faulty software update from CrowdStrike. This incident led to widespread flight cancellations affecting approximately 1.3 million customers and financial losses exceeding $500 million for Delta.
Despite these challenges, CrowdStrike has garnered positive attention from analyst firms. Wedbush Securities has initiated coverage on CrowdStrike, assigning an Outperform rating, while TD Cowen reiterated its Buy rating, expecting strong growth by the second half of 2026.
In addition, CrowdStrike has formed a strategic partnership with Plurilock Security Inc. to enhance protection for critical infrastructure, leveraging CrowdStrike's Falcon platform. These are the recent developments for CrowdStrike, offering an insight into the company's current standing in the market.
InvestingPro Insights
CrowdStrike's strong market position, as highlighted in Stifel's analysis, is further supported by recent InvestingPro data. The company's revenue growth remains robust, with a 33.07% increase in the last twelve months as of Q2 2025, and a 31.74% quarterly growth in Q2 2025. This aligns with the positive outlook suggested by Stifel's checks and the company's potential for recovery.
InvestingPro Tips indicate that CrowdStrike's net income is expected to grow this year, and analysts predict the company will be profitable. This supports Stifel's optimistic stance on the company's future performance. Additionally, CrowdStrike has shown a strong return over the last year, with a 70.07% price total return, reflecting investor confidence despite the challenges mentioned in the article.
It's worth noting that CrowdStrike is trading at high valuation multiples across various metrics, including earnings, EBIT, EBITDA, and revenue. This suggests that investors are pricing in significant future growth expectations, which aligns with Stifel's increased price target.
For readers interested in a deeper analysis, InvestingPro offers 15 additional tips for CrowdStrike, providing a comprehensive view of the company's financial health and market position.
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