On Friday, Rosenblatt Securities adjusted its outlook on CrowdStrike Holdings (NASDAQ:CRWD), a leader in cloud-delivered endpoint and cloud workload protection, by increasing its stock price target to $415 from the previous $400. The firm has also reaffirmed its Buy rating on the company's stock.
The price target revision comes as Rosenblatt anticipates a strong performance from CrowdStrike in its upcoming earnings report for the first quarter of fiscal year 2025, scheduled for release on June 4th. The firm's confidence is bolstered by positive feedback from Chief Information Security Officers (CISOs) and resellers at two recent industry conferences, indicating a beat and raise quarter.
Rosenblatt's optimism is further supported by CrowdStrike's sustained business momentum and the successful cross-selling of its expanded module portfolio. These factors are seen as key drivers for the company's continued growth.
As a result of the firm's fieldwork, Rosenblatt has revised upward its estimates for CrowdStrike's Annual Recurring Revenue (ARR), revenue, and pro forma Earnings Per Share (EPS) for fiscal years 2025 and 2026. This comprehensive analysis led to the new price target of $415, reflecting a positive outlook for the cybersecurity company's financial trajectory.
CrowdStrike's upcoming earnings report is highly anticipated by investors, as it will provide further insight into the company's performance and its ability to sustain growth in the competitive cybersecurity market.
InvestingPro Insights
As CrowdStrike Holdings (NASDAQ:CRWD) gears up for its first-quarter earnings report, InvestingPro data provides a deeper dive into the company's financial health and market performance. With a robust market capitalization of $76.41 billion and a striking year-to-date price total return of 23.73%, the cybersecurity firm has demonstrated a strong market presence. Despite a recent pullback with a 1-week price total return of -10.11%, the company's 6-month price total return shows a significant gain of 33.31%, underscoring its volatility but also the potential for recovery and growth.
InvestingPro Tips highlight that CrowdStrike is expected to see net income growth this year, a prediction that aligns with Rosenblatt Securities' positive outlook. Moreover, the company's liquid assets surpass its short-term obligations, indicating a solid financial position to weather potential market fluctuations. It's worth noting that CrowdStrike trades at a high earnings multiple, with a P/E ratio of 848.13, suggesting that investors have high expectations for future earnings growth.
For those considering an investment in CrowdStrike, there are 14 additional InvestingPro Tips available that delve into various aspects of the company's performance and valuation. These tips can be accessed through InvestingPro's platform at https://www.investing.com/pro/CRWD. Readers interested in a comprehensive analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more informed perspective to guide investment decisions.
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