Cybersecurity provider CrowdStrike (NASDAQ:CRWD) is scheduled to announce its first quarter Fiscal 2025 earnings on June 4, after the market closes. Wall Street analysts are optimistic about the demand for CrowdStrike’s endpoint security offerings, given the increasing cyberattacks.
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” bullish analysts see CRWD as a technology leader in the Endpoint Security market.
CRWD – Q1 Expectations
The Street expects CRWD to post earnings of $0.9 per share in Q1, compared with $0.57 per share in the prior-year period. Meanwhile, analysts expect CrowdStrike to deliver revenue of $904.6 million, compared to $692.58 million in the prior-year quarter.
Interestingly, CRWD has an impressive history of delivering strong quarterly performances. The company beat analysts’ earnings expectations for 15 consecutive quarters, indicating the potential for it to outperform estimates again in the to-be-reported quarter.
Analysts Opinion
Heading into the company’s earnings release, six analysts have rated CRWD stock. Among the bullish analysts, Catherine Trebnick from Rosenblatt Securities expects the company to beat Q1 estimates and raise its outlook. Interestingly, she raised the price target on CrowdStrike stock to $415 (implying 32.3% upside potential) from $400.
Also, Morgan Stanley analyst Hamza Fodderwala boosted the price target to $422 from $372. He is optimistic about CrowdStrike’s potential in AI monetization and the growing demand for its platform.
Is CrowdStrike a Buy, Sell, or Hold?
Wall Street is optimistic about CrowdStrike. The stock has a Strong Buy consensus rating based on 36 Buys and one Hold rating assigned in the past three months. Following a year-to-date rally of 23%, the analysts’ average price target on CRWD stock of $401.19 implies 27.9% upside potential.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 11.08% move in either direction.
Concluding Thoughts
The rise in cyberattacks has increased the demand for advanced cybersecurity solutions. This puts CrowdStrike in a position to take advantage of an expanding market, which is projected to grow by 15.18% to reach $158.8 billion by 2028. In addition, Wall Street maintains confidence in CrowdStrike’s long-term potential.
