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BMO raises CrowdStrike shares target as ARR smashes estimates

EditorEmilio Ghigini
Published 03/06/2024, 08:44 AM
© Reuters.
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On Wednesday, BMO Capital Markets adjusted its outlook on CrowdStrike Holdings (NASDAQ:CRWD), a leader in cloud-delivered endpoint and cloud workload protection. The firm raised its price target on the shares to $425.00, up from the previous $332.00, while reiterating an Outperform rating.

The revision follows CrowdStrike's impressive performance in the recent quarter, where the company's net new Annual Recurring Revenue (ARR) reached $282 million. This figure notably surpassed the consensus estimate of $242 million and even exceeded the expectations of the buy-side, according to BMO Capital.

CrowdStrike's robust quarterly results and forward-looking guidance have distinguished the company from other security reports. This distinction has heightened concerns regarding the recent challenges and go-to-market strategy changes faced by Palo Alto Networks (NASDAQ:PANW), as observed by BMO Capital.

The firm remains confident in CrowdStrike's market position and prospects, leading to the decision to maintain the Outperform rating. The increase in the price target to $425 reflects BMO Capital's positive assessment of CrowdStrike's financial trajectory and its standout performance in the cybersecurity sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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