6 CrowdStrike Analysts Offer Takes On Earnings Beat And Raise Quarter

Zinger Key Points
  • CrowdStrike can "extend beyond traditional endpoint security markets," an analyst said.
  • The new fiscal-year guidance implies 1% higher sales guidance in the second half, another analyst stated.

CrowdStrike Holdings Inc CRWD reported its quarter revenue at $535.2 million, up 58% from the year-ago quarter, and adjusted earnings of 36 cents per share, beating analyst expectations. Management guided to earnings for the third quarter and fiscal year ahead of the consensus estimates.

BofA Securities On CrowdStrike Holdings

Analyst Tal Liani reiterated a Buy rating and a price target of $220.

The company reported strong results for the second quarter, “with revenues beating Street’s expectations by about 4%,” and subscription revenues “again trended in the right direction to 95% of total revenue,” Liani said in a note.

“Underlying demand remains strong for the core offerings as well as for the emerging products,” the analyst wrote. He expressed optimism around “CrowdStrike’s ability to gain share, cross-sell new modules, and help enterprises consolidate products.”

JMP Securities On CrowdStrike Holdings

Analyst Trevor Walsh maintained a Market Outperform rating and a price target of $275.

“CrowdStrike’s cloud-native platform enables the company to quickly expand into new areas of cybersecurity, leading to a company-calculated TAM of $126 billion by 2025,” Walsh wrote in a note.

He added, “CrowdStrike is well-positioned to address trending XDR and cloud security market opportunities,” given its wide portfolio, strategic technology partnerships, and the Humio acquisition.

Mizuho Securities On CrowdStrike Holdings

Analyst Gregg Moskowitz reiterated a Buy rating, while raising the price target from $220 to $230.

CrowdStrike’s solid results were driven by 59% year-on-year growth in annual recurring revenue (ARR), which “surpassed the Street's 57% target and our slightly higher 58% forecast,” Moskowitz said.

The company “added a record number of new subscription customers, and mgmt comfortably raised its top- and bottom-line guidance for the full year,” he added.

“More broadly, we believe CRWD’s cloud platform remains highly differentiated, and we remain confident the co. can very successfully extend beyond traditional endpoint security markets,” the analyst further stated.

Check out other analyst stock ratings.

RBC Capital Markets On CrowdStrike Holdings

Analyst Matthew Hedberg reaffirmed an Outperform rating, while raising the price target from $232 to $236.

“The Crowd has spoken with the resiliency of its land-and-expand model despite an uneven macro,” Hedberg wrote.

“Record net-new ARR was driven by record customer adds and the highest DBNR in seven quarters as management raised guidance, noting a record pipeline but also a pragmatic view of macro conditions,” he added.

“CRWD remains one of our favorite ideas and the company continues to make reporting exceptional results look ordinary,” the analyst further said.

Stephens On CrowdStrike Holdings

Analyst Brian Colley reiterated an Overweight rating and a price target of $236.

“CRWD added a record 1,741 net new customers (vs. 1,620 in 1Q23) for a total customer count of 19,686 (+51% y/y),” Colley said in a note. “CRWD raised FY23 guidance above consensus across all key metrics, with implied 2H sales guidance increasing by 1%/$9M,” he added.

Needham On CrowdStrike Holdings

Analyst Alex Henderson maintained a Buy rating, while raising the price target from $210 to $225.

CrowdStrike’s raised guidance for the quarter and the year puts “the Street consensus at the low end of the guidance band,” Henderson said in a note. “We think it's critical to see Crowd as the broadest Cloud Security platform, not as an End-Point company,” he added.

CRWD Price Action: Shares of CrowdStrike Holdings had declined by 6.55% to $180.62 at the time of publication Wednesday.

Posted In: Alex HendersonBofA SecuritiesBrian ColleyGregg MoskowitzJMP SecuritiesMatthew HedbergMizuho SecuritiesNeedhamRBC Capital MarketsStephensTal LianiTrevor WalshAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst Ratings