Bank of America Downgrades CrowdStrike Stock (CRWD) as “Valuation Leaves Only Limited Upside”

Bank of America downgraded CrowdStrike Holdings (CRWD) stock to Hold from Buy, as it believes that “valuation leaves only limited upside” from current levels for the cybersecurity company. The downgrade follows CrowdStrike’s mixed results for the first quarter of Fiscal 2026 and weak revenue guidance.

Bank of America Moves to the Sidelines on CRWD Strike

Bank of America Securities analyst Tal Liani downgraded CrowdStrike stock but boosted the price target to $470 from $420 to reflect the recent sector multiple expansion. The 5-star analyst contended that while he acknowledges CrowdStrike’s fundamentals and growth prospects, he believes that the stock’s current valuation of 20x Enterprise Value/Sales (2026 estimate) leaves limited upside potential.

Liani noted that CrowdStrike’s growth has decelerated to below 20% in the first half of Fiscal 2026. He also pointed out that Q2 FY26 revenue growth guidance of 19% was 130 basis points below the Street’s consensus estimate, partly due to the Customer Commitment Packages (CCP) transition and amortization of the partner program.

While the analyst expects growth to accelerate to about 22% in the second half of Fiscal 2026, driven by CCP-related renewals, he believes that growth will decelerate in the next few years, supporting his growing focus on valuation. He estimates that CRWD’s revenue growth will decelerate from 21% in 2025 to 18% in 2027.

Unlike Liani, several analysts remain bullish on CrowdStrike stock. For instance, 4-star analyst Roger Boyd from UBS reiterated a Buy rating on CRWD stock with a price target of $545. Boyd prefers to look beyond some of the near-term revenue headwinds from the company’s outage-related discounting program, which resulted in Q1 revenue falling below the midpoint of guidance and the Q2 outlook missing expectations. The analyst noted the continued strength in momentum and contended that while CRWD stock’s valuation remains the key debate, he thinks that CrowdStrike deserves a premium valuation for accelerating more than 20% revenue growth and faster free cash flow growth.

Is CRWD Stock a Good Buy?

Overall, Wall Street is cautiously optimistic on CrowdStrike stock, with a Moderate Buy consensus rating based on 29 Buys, eight Holds, and one Sell recommendation. The average CRWD stock price target of $483.03 implies about 5% upside potential from current levels. CRWD stock has risen about 35% year-to-date.

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