CrowdStrike price target raised to $490 from $455 at Morgan Stanley

Morgan Stanley raised the firm’s price target on CrowdStrike (CRWD) to $490 from $455 and keeps an Overweight rating on the shares. The key metric of Net New ARR came in at $194M, which was 11% above consensus but below elevated buyside expectations, the analyst tells investors. With shares up greater than 20% in the quarter, expectations were running high, leaving an 11% beat to consensus net new annual recurring revenues versus a roughly 8% average beat over the last four quarters still below buy-side expectations and pressuring the shares after hours, the analyst added. While it was a “good quarter,” the company is “waiting for a great back half” and management reaffirming a view of second half NNARR acceleration as well as expanding free cash flow margins means “shares should see support, despite a premium valuation,” the analyst argues.