On Wednesday, Rosenblatt raised the price target for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) shares to $420 from $415, while maintaining a Buy rating on the stock. The cybersecurity firm's quarterly performance exceeded expectations, showcasing significant growth in key financial areas.
CrowdStrike reported a year-over-year increase of 22% in Net New Annual Recurring Revenue (ARR) and a 33% surge in revenue. The company's profitability metrics were equally strong, with an operating margin of 21.6% and a Free Cash Flow (FCF) margin of 35%.
These results were attributed to widespread demand across CrowdStrike's platform, high win rates, and the positive impact of the Falcon flex licensing model, which consolidated various point products on the Falcon platform.
The company's outlook for the second quarter appears robust, with a record pipeline that signals sustained growth potential. CrowdStrike's financial performance stands out in the cybersecurity industry, marked by a 33% growth in ARR, a 33% increase in revenue, solid operating margins, and a projected FCF margin for the fiscal year 2025 ranging between 31% and 33%.
Based on these strong indicators and the updated guidance, Rosenblatt has revised its estimates for the fiscal years 2024 and 2025.
The firm's analyst cited CrowdStrike's exceptional financial results and growth potential as the basis for reiterating a Buy rating and increasing the price target.
In other recent news, cybersecurity firm CrowdStrike Holdings reported a robust first quarter for fiscal year 2025 with significant year-over-year growth.
Revenue surpassed FactSet consensus estimates, and the company achieved a net new annual recurring revenue (ARR) 7.7% higher than anticipated.
Notably, CrowdStrike's ARR reached a new high of $3.65 billion, marking a 33% increase from the previous year. The company's free cash flow (FCF) hit $323 million, representing 35% of revenue, and it also reported record operating income and margin, net income, and EPS.
Cantor Fitzgerald maintained its Overweight rating and $400 price target, while Mizuho Securities reduced its price target to $370, citing a reduction in comparable company multiples.
TD (TSX:TD) Cowen confirmed a price target of $400, and RBC (TSX:RY) Capital maintained an Outperform rating with a $420 price target. These assessments highlight CrowdStrike's distinct market position and potential for future growth.
The company's impressive growth was underpinned by the increased adoption of its platform, with deals including eight or more modules expanding at a 95% year-over-year rate.
CrowdStrike's raised guidance for the second quarter was also a positive sign, with management opting to raise their forecast for the fiscal year 2025. These recent developments provide a glimpse into CrowdStrike's ongoing performance and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.