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CrowdStrike Analysts Lift Price Targets; Stock Slips

CrowdStrike gets analysts' praise on its earnings beat, but one cites disappointing recurring revenue growth guidance.

Several analysts raised their price targets for CrowdStrike  (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report Wednesday after the cybersecurity company beat Wall Street's second-quarter earnings expectations.

Shares of the Sunnyvale, Calif., company were down 3% to $272.40 at last check.

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CrowdStrike reported earnings of 11 cents a share, beating the FactSet consensus of 9 cents a share. Revenue totaled $337.7 million, up 70% from a year earlier. Analysts were looking for $323.2 million.

The company also raised its revenue guidance for the year to a range of $1.39 billion to $1.4 billion. It had raised its outlook to a range of $1.34 billion to $1.36 billion in June, when it beat Wall Street's first-quarter earnings estimates. 

Goldman Sachs analyst Brian Essex raised his price target on CrowdStrike to $305 from $296, while keeping a buy rating on the shares, according to the Fly.

CrowdStrike last night delivered "another beat and raise quarter as the company benefited from another quarter of elevated demand," Essex said. But it traded lower following net new annual recurring revenue growth guidance that was slightly less than investors had hoped for.

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Essex, nonetheless, said the quarter demonstrated CrowdStrike's "ability to continue to go down market efficiently."

RBC Capital analyst Matthew Hedberg boosted his price target  to $315 from $300, while affirming an outperform rating on the shares.

Hedberg said the company delivered another strong quarter. He cited the second quarter's new annual recurring revenue of $151 million exceeding $140 million in the first quarter. And it brought in a record 1,660 new customers, an organic acceleration to 81% compared with a year earlier.

The analyst said that CrowdStrike's record pipeline entering the third quarter should continue to fuel the company's "land-and-expand" momentum.

Deutsche Bank analyst Patrick Colville raised his price target to $320 from $265, while reiterating a buy rating on the shares.

CrowdStrike "continues its impressive form" with annual recurring revenue rising 70% in the second quarter.

Mizuho analyst Gregg Moskowitz boosted his price target to $330 from $310 and kept a buy rating following "very good" results. 

The annual recurring revenue growth of 70% year-over-year "was strong and still nicely surpassed" Wall Street's 65% to 66% estimate, Moskowitz said. He says "strong execution can propel" CrowdStrike's stock higher.