Bank of America Securities analyst Tal Liani reiterated a Hold rating on CrowdStrike Holdings yesterday and set a price target of $470.00.
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Tal Liani’s rating is based on a combination of factors that reflect both the strengths and challenges faced by CrowdStrike Holdings. On the positive side, the company has demonstrated strong execution with solid growth in new product areas such as next-gen SIEM, which saw a 95% year-over-year increase. Additionally, the company’s strategy and growth profile are commendable, with ARR growth slightly exceeding market expectations. However, despite these strengths, there are notable concerns that justify a Hold rating.
One of the primary concerns is the rich valuation of CrowdStrike’s stock, which is trading at high multiples compared to future earnings and sales. Furthermore, there is a deceleration in ARR growth, projected to slow down significantly over the next few years. The company also faces some revenue growth pressures due to rebates associated with the CCP program. These factors, combined with missed revenue guidance for upcoming quarters, suggest limited valuation upside, prompting a cautious stance until further evidence of sustained growth and stabilization in ARR is observed.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $405.00 price target.
CRWD’s price has also changed moderately for the past six months – from $389.660 to $442.000, which is a 13.43% increase.