On Thursday, Wedbush Securities initiated coverage on CrowdStrike Holdings (NASDAQ:CRWD) stock, a leader in cloud-delivered endpoint and cloud workload protection, assigning an Outperform rating and setting a price target of $330.00.
The firm highlighted the company's robust platform adoption and momentum in key areas such as Cloud, Identity, and Logscale. Additionally, CrowdStrike's Data Protection and Charlotte AI have delivered better-than-expected results.
The cybersecurity firm has reported that its net retention rate aligns with expectations and that the addition of new logos, a term for new customers, has been healthy. These factors contribute to the positive outlook on the company's performance and future growth prospects.
Despite a global IT outage on July 19th, caused by a content update to its Falcon platform, CrowdStrike's potential liabilities and damages appear to be more limited than initially feared.
While acknowledging that CrowdStrike will likely encounter challenges over the next 12 to 18 months as a result of the outage, Wedbush maintains a positive long-term stance on the company. The firm regards CrowdStrike as the gold standard in cybersecurity, viewing the outage as a temporary setback in its multi-year growth narrative.
The incident in July, which had raised concerns across the industry, has since been reassessed, with the impact deemed to be less severe than originally anticipated. This reassessment has contributed to the reaffirmation of CrowdStrike's strong position in the market by analysts.
In summary, despite the recent IT disruption, Wedbush's outlook for CrowdStrike remains optimistic. The firm's analysis suggests that the company's comprehensive cybersecurity solutions and continued customer growth will drive its success in the long term, reinforcing its status as a leading entity in the cybersecurity space.
InvestingPro Insights
CrowdStrike's strong market position, as highlighted in the article, is further supported by recent financial data and expert insights from InvestingPro. The company's market capitalization stands at an impressive $75.07 billion, reflecting investor confidence in its growth trajectory. This aligns with the article's emphasis on CrowdStrike's robust platform adoption and momentum in key areas.
InvestingPro data reveals that CrowdStrike's revenue growth remains strong, with a 33.07% increase over the last twelve months as of Q2 2025. This growth underscores the company's ability to expand its customer base and increase platform adoption, as mentioned in the article. Additionally, the gross profit margin of 75.37% indicates CrowdStrike's efficiency in delivering its cybersecurity solutions.
InvestingPro Tips highlight that CrowdStrike "holds more cash than debt on its balance sheet" and that "liquid assets exceed short-term obligations." These factors contribute to the company's financial stability, which is crucial for weathering challenges such as the recent IT outage discussed 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 premium valuation suggests that investors are pricing in significant future growth, aligning with Wedbush's optimistic outlook and $330 price target.
For investors seeking a deeper understanding of CrowdStrike's potential, InvestingPro offers 13 additional tips, providing a comprehensive analysis of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.