On Wednesday, CrowdStrike Holdings (NASDAQ:CRWD) saw its price target increased by Canaccord Genuity (TSX:CF) from $400.00 to $405.00 for the shares, while the firm maintained a Buy rating on the stock. This adjustment follows CrowdStrike's report of another record-breaking quarter.
The cybersecurity company's first-quarter achievements included a 33% year-over-year increase in annual recurring revenue (ARR) to $3.65 billion, surpassing estimates with a record Q1 net new ARR of $212 million.
CrowdStrike's management also raised its fiscal year 2025 guidance, projecting revenue growth between 30%-31% and free cash flow (FCF) margin of 31%-33%.
In the first quarter, CrowdStrike accomplished a Rule of 60+ with a record free cash flow of $322 million, resulting in 35% FCF margins and a 72% year-over-year increase in non-GAAP operating income.
The company's growth was further evidenced by a 95% year-over-year increase in deals involving eight or more product modules, with notable expansions in Cloud Security, Identity Threat Protection, and LogScale.
Canaccord Genuity expressed confidence in CrowdStrike's long-term growth potential, citing the company's native cloud technology advantage and expanding platform into adjacent segments.
This strategy is expected to help CrowdStrike reach its long-term target of over $10 billion in ARR within the next 5-7 years, ahead of schedule. The firm's estimate of CrowdStrike's addressable market is a potential $225 billion by calendar year 2028.
The firm's analyst highlighted CrowdStrike's unique position in the market and justified a premium multiple for the stock based on its impressive growth and profitability metrics.
The upgrade in the price target reflects the firm's increased confidence in CrowdStrike's long-term growth opportunities and its consistent market share gains.
In other recent news, cybersecurity firm CrowdStrike Holdings has been under the analyst's lens following its first-quarter results for fiscal year 2025.
The company's earnings report revealed a 33% surge in Annual Recurring Revenue (ARR), reaching $3.65 billion, and a 35% Free Cash Flow (FCF) margin.
This robust financial performance was driven by strong demand for its emerging modules, such as the Charlotte AI technology and Falcon Flex (NASDAQ:FLEX) program.
Scotiabank (TSX:BNS) revised its price target for CrowdStrike to $393, maintaining a Sector Outperform rating. Rosenblatt raised its price target to $420, reiterating a Buy rating. Cantor Fitzgerald also kept its Overweight rating with a $400 price target.
TD (TSX:TD) Cowen confirmed a price target of $400, while Mizuho Securities reduced its price target to $370, citing a reduction in comparable company multiples, but still keeping a Buy rating.
These recent developments highlight the company's distinct market position and growth potential in the cybersecurity industry.
The increased adoption of CrowdStrike's platform, with deals including eight or more modules expanding at a 95% year-over-year rate, underpins the company's impressive growth. Furthermore, the management has raised their forecast for fiscal year 2025, indicating a positive outlook.
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