On Monday, Rosenblatt Securities adjusted its outlook on shares of CrowdStrike Holdings (NASDAQ:CRWD), a leader in cloud-delivered endpoint and cloud workload protection, by increasing the price target to $385 from the previous $325. The firm has reiterated its Buy rating for the stock.
The price target adjustment comes as investors closely monitor CrowdStrike's rebound from the July 19th system outage. According to Rosenblatt's analysis, customer confidence in CrowdStrike remains unshaken, and there is no significant customer loss.
The firm's channel checks have revealed that CrowdStrike's swift actions, including the roll-out of Customer Commitment Packages (CCP) and Flex (NASDAQ:FLEX) Pricing options, have been effective in retaining customers, despite the projected Annual Recurring Revenue (ARR) and revenue impact for the second half of 2025, estimated at a $60 million headwind.
The analyst noted that discussions with 20 Chief Information Security Officers (CISOs) across various industries and four resellers suggest that the credits provided are being used strategically to purchase additional modules and prolong contracts. While some renewals might be postponed, the overall customer retention is perceived to be solid.
In anticipation of a moderate upside for the quarter and a potential slight increase in guidance, Rosenblatt has raised its price target. This update is particularly significant as the market has high expectations for CrowdStrike, evidenced by the stock's 20% rise in the last 30 days and a 45% increase year-to-date. The upcoming financial report will be the first to fully account for the effects of the July outage.
In other recent news, CrowdStrike Holdings has been garnering attention due to a variety of significant developments. The cybersecurity firm is set to release its third-quarter fiscal year 2025 earnings report, following a challenging period marked by a faulty update in July 2024. Despite these hurdles, analysts from JPMorgan, Cantor Fitzgerald, Stifel, and Truist Securities have all displayed confidence in the company, raising their price targets for CrowdStrike.
JPMorgan, in particular, highlighted the company's platform strength and anticipated over $1 billion in Annual Recurring Revenue (ARR) growth. Cantor Fitzgerald also expressed optimism, expecting broader adoption of CrowdStrike's platform and potential ARR acceleration. Stifel and Truist Securities both raised their price targets ahead of the Q3 earnings report, signaling faith in the company's medium-term market opportunities.
However, CrowdStrike is currently facing a lawsuit from Delta Air Lines (NYSE:DAL) over the July outage, which resulted in widespread flight cancellations and financial losses exceeding $500 million. Despite this, CrowdStrike continues to make strategic moves, such as forming a partnership with Plurilock Security Inc., to strengthen its market position. These recent developments have placed CrowdStrike in the spotlight, shaping its current market standing.
InvestingPro Insights
CrowdStrike's robust market position, as highlighted in the article, is further supported by recent InvestingPro data. The company's market capitalization stands at an impressive $91.25 billion, reflecting strong investor confidence. This aligns with Rosenblatt's positive outlook and increased price target.
InvestingPro Tips indicate that CrowdStrike's net income is expected to grow this year, which could be a factor in the analyst's optimistic stance. Additionally, the company's revenue growth of 33.07% over the last twelve months demonstrates its continued expansion in the cybersecurity market.
The stock's recent performance has been particularly noteworthy, with InvestingPro data showing a 23.83% price return over the past month and a substantial 76.71% return over the last year. This aligns with the article's mention of the stock's 20% rise in the last 30 days and 45% increase year-to-date.
It's worth noting that CrowdStrike is trading near its 52-week high, with its current price at 93.46% of that peak. This could be seen as a validation of the company's strategy and market position, despite the July outage mentioned in the article.
For investors seeking a deeper analysis, InvestingPro offers 18 additional tips for CrowdStrike, providing a comprehensive view of the company's financial health and market performance.
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