William Blair analyst Jonathan Ho has maintained their bullish stance on CRWD stock, giving a Buy rating today.
Jonathan Ho’s rating is based on CrowdStrike Holdings’ impressive performance and growth potential. The company reported a strong quarter, exceeding consensus expectations with $224 million in net new Annual Recurring Revenue (ARR) and a 23% year-over-year increase in total ARR, reaching $4.24 billion. This growth was driven by the robust performance of its non-endpoint businesses, including SIEM, cloud, and identity, which together surpassed $1.3 billion in ARR.
Despite some short-term challenges, such as a muted revenue guidance and net new ARR lagging the prior year due to the CCP program, the company maintained a high gross retention rate of 97%. This indicates strong customer loyalty and the potential for converting free offerings into paid contracts in the future. Ho sees the CCP initiative as a positive step, providing an opportunity for increased customer engagement and platform adoption, which could lead to accelerated business growth in the latter half of the year.
In another report released today, Needham also maintained a Buy rating on the stock with a $420.00 price target.
Based on the recent corporate insider activity of 113 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRWD in relation to earlier this year.