Bernstein analyst Peter Weed maintained a Buy rating on CrowdStrike Holdings (CRWD – Research Report) yesterday and set a price target of $347.00.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Peter Weed has given his Buy rating due to a combination of factors surrounding CrowdStrike Holdings’ strategic decisions. The company announced a layoff of approximately 500 positions, which represents about 5% of its global workforce. This move is part of a strategic plan to reallocate resources towards customer-facing roles and research and development in key areas, aligning with their goal of achieving a $10 billion annual recurring revenue target.
Weed interprets this layoff not as a negative signal but as a strategic maneuver to improve operational efficiency amidst a market environment where employee attrition has decreased. The reduction is seen as a necessary step to enhance revenue per employee, a critical metric for the company’s growth. Despite the layoff, the company has reiterated its financial guidance, indicating confidence in meeting or exceeding those targets. Consequently, Weed maintains a positive outlook on CrowdStrike’s future performance, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $475.00 price target.
CRWD’s price has also changed moderately for the past six months – from $330.780 to $422.520, which is a 27.73% increase.