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CrowdStrike (NASDAQ:CRWD) set itself apart from cybersecurity rivals after posting record-breaking first quarter fiscal year 2025 financial results on Tuesday.
The stock was up 11% during premarket trading on Wednesday.
“Amidst a challenging wave of software earnings, CrowdStrike continued its consistent execution and turned in another solid quarter,” said Oppenheimer analyst Ittai Kidron and others in a note. “We believe the company is setting itself apart from the pack, and while this will certainly drive expectations higher, we believe the company can lean on its single-agent architecture and growing platform breadth to sustain its momentum.”
Oppenheimer rates CrowdStrike as Outperform with a 12 to 18-month price target of $400.
“CRWD stock is viewed as being richly priced at approximately 80x forward non-GAAP EPS,” said Seeking Alpha analyst and contributor Michael Wiggins De Oliveira. “But there again, this is arguably the leading stock in its space, and it’s growing nearly faster than everyone else.”
CrowdStrike’s comprehensive cybersecurity platform Falcon integrates “multiple security functions into a single solution for faster protection,” he added.
Morgan Stanley rates the stock a top pick with an Overweight rating and a hefty price target of $422.
Like other investment banks and analysts, Morgan Stanley was impressed with CrowdStrike’s surging ARR and net new ARR. CrowdStrike also upped its revenue guidance to 30-31% for fiscal year 2025, making it one of only three software companies expecting 30% or more year-over-year growth.
J.P. Morgan also rates the stock at Overweight and set a price target of $400.
“Considering valuation at compelling levels, strengthening secular demand trends, and an outlook that implies ongoing fundamental improvement, we believe now is the right opportunity to own CrowdStrike,” said J.P. Morgan’s Brian Essex.
Citi has placed a Buy rating on CrowdStrike and set a stout price target of $425 on the stock.
Meanwhile, Bernstein Société Générale Group maintains its Outperform rating on the stock, but lowered its price target to $381 from $397.
“There is clear demand for the product and their hiring activity to support the demand are further indications of the same,” said Bernstein’s Peter Weed. “We only slightly tweak our revenue to account for less professional services (lowering full-year revenue $30MM), and 3% lower FCF expectations based on guide.”
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