The stock of CrowdStrike (CRWD) is up 10% on Sept. 18 after the cybersecurity firm held its annual investor day.
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The jump in CRWD stock comes as Wall Street analysts hike their price targets on the company’s shares after management delivered several bullish presentations at the company’s “Fal.Con” conference and investor meeting, most of which showcased new artificial intelligence (AI) products.
Not only were analysts impressed with CrowdStrike’s AI offerings, they also liked that management telegraphed 20% growth in next year’s annual recurring revenue (ARR), which measures predictable, recurring revenue generated from subscriptions. In August, CrowdStrike said its ARR grew 20% year-over-year to nearly $4.7 billion in its Fiscal second quarter, beating Wall Street forecasts.
Analyst Upgrades
Following the investor day presentations, Mizuho Financial Group (MFG) raised its price target on CrowdStrike’s stock to $475 from $450. While Mizuho said it was impressed with what management had to offer, it reiterated a Hold-equivalent neutral rating on CRWD stock, citing its rich valuation of 102 times forward earnings estimates.
However, analysts at KeyBanc (KEY) raised their price target on CrowdStrike’s stock to $510 from $495 and maintained a Buy-equivalent overweight rating. KeyBanc said they like CrowdStrike’s strong position in AI and ability to leverage its cybersecurity platform with existing cloud-computing networks. CRWD stock has gained 44% this year.
Is CRWD Stock a Buy?
The stock of CrowdStrike has a consensus Moderate Buy rating among 40 Wall Street analysts. That rating is based on 25 Buy and 15 Hold recommendations issued in the last three months. The average CRWD price target of $490.89 implies 0.55% downside from current levels.
