Strong Long-Term Growth Prospects for CrowdStrike Holdings Amid Short-Term Challenges

Analyst Joseph Gallo of Jefferies maintained a Buy rating on CrowdStrike Holdings (CRWD – Research Report), retaining the price target of $410.00.

Joseph Gallo has given his Buy rating due to a combination of factors that highlight CrowdStrike Holdings’ strong long-term positioning in the cybersecurity market. Despite potential challenges in the near term, such as seasonality and macroeconomic impacts, Gallo views CrowdStrike as one of the best-positioned cybersecurity platforms for long-term growth. The company is expected to achieve a 21% year-over-year growth in annual recurring revenue (ARR) in the first fiscal quarter, aligning with consensus expectations, although investor hopes are slightly higher.
Looking further ahead, Gallo anticipates that CrowdStrike will benefit from increased module adoption and easier comparisons in the second half of fiscal year 2026, projecting a 27% year-over-year growth in new business ARR. While there are concerns about valuation and free cash flow margins in the short term, Gallo remains confident in the company’s ability to achieve a 30%+ free cash flow margin by fiscal year 2027. Despite some noise from federal investigations and lawsuits, these are seen as potential distractions rather than significant threats to the company’s growth trajectory.

In another report released yesterday, Rosenblatt Securities also reiterated a Buy rating on the stock with a $515.00 price target.

CRWD’s price has also changed moderately for the past six months – from $346.800 to $479.170, which is a 38.17% increase.