TD Cowen on Friday maintained its Buy rating on CrowdStrike Holdings (NASDAQ:) stock with a firm price target of $380.00. The company’s outlook remains positive as CrowdStrike introduced a wide range of upgrades to its Falcon platform, which is projected to expand its total addressable market (TAM) to $116 billion by calendar year 2025.
The company acknowledged potential challenges, such as Microsoft’s (NASDAQ:) likely decision to limit kernel-level access for security vendors. However, the company is confident that such changes will not undermine CrowdStrike’s long-term competitive position, citing the mission-critical nature of the Falcon platform.
TD Cowen also addressed the issue of customer retention, noting that there have been no significant signs of customer churn following the service disruptions. This observation supports the company’s belief that CrowdStrike’s annual recurring revenue (ARR) guidance for fiscal year 2026 is conservative.
The company’s endorsement of CrowdStrike shares reflects confidence in the company’s growth prospects and the strategic value of its product offering. Falcon’s platform innovations are seen as a key enabler for expansion in the cybersecurity market.
The $380.00 price target suggests TD Cowen sees substantial upside potential for CrowdStrike stock. The firm’s rating and price target are based on the company’s strategic updates, market opportunity, and resilience in the face of industry challenges.
In other recent news, CrowdStrike Holdings has been the focus of several analyst reviews and strategic initiatives. Goldman Sachs reaffirmed a Buy rating on CrowdStrike with a revised target price of $324, following the cybersecurity firm’s Fal.Con 2024 conference. The company’s Falcon Flex (NASDAQ:) product was a standout, contributing to an average increase of more than 65% in annual recurring revenue (ARR). Scotiabank, Truist Securities, CapitalOne, and Piper Sandler maintained their respective ratings, reflecting confidence in CrowdStrike’s growth potential despite uncertainties around near-term financial projections.
CrowdStrike beat expectations in its fiscal second quarter in terms of annual recurring revenue (ARR), revenue, and non-GAAP earnings per share, although guidance for the fiscal third quarter and fiscal 2025 fell short of consensus estimates. Company management reiterated its long-term annual recurring revenue (ARR) target of $10 billion by fiscal 2031. To achieve this, CrowdStrike launched strategic initiatives such as CrowdStrike Financial Services and established partnerships with Dazz and 1Password to enhance cloud security measures.
These recent developments follow CrowdStrike’s successful overcoming of a major challenge earlier this year, when a software update led to global service disruptions. The company’s crisis management skills were put to the test and subsequently showcased at its Fal.Con 2024 event. The company’s ability to acquire new customers, as well as its upselling and cross-selling strategies, are expected to be key factors influencing the company’s revenue through 2025.
InvestingPro Insights
As CrowdStrike Holdings (NASDAQ:CRWD) continues to innovate and expand its Falcon platform, InvestingPro’s real-time data matches TD Cowen’s bullish view on the company’s growth potential. With a robust market cap of $67.99 billion, CrowdStrike’s financial health is underlined by a significant cash position that dwarfs its debt, suggesting a solid foundation for future investment and growth. Additionally, the company’s impressive revenue growth of over 33% over the trailing twelve months through Q2 2025 highlights its strong performance in the cybersecurity sector.
InvestingPro Tips further reveals that analysts expect net revenue growth this year for CrowdStrike, which could bolster investor confidence. While the company trades at high valuation multiples, such as a P/E ratio of 396.59 and a price-to-book ratio of 23.83, these figures reflect its elevated growth trajectory and the market’s confidence in its strategic direction. Moreover, the company has demonstrated high profitability over the past year, with a total price return of 62.99%, which demonstrates its strong performance in the market.
For investors looking for more detailed analysis and additional advice, there are 15 more InvestingPro tips available for CrowdStrike, which offer deeper analysis of the company’s financials and market position. These insights can be accessed at: https://www.investing.com/pro/CRWD
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