CrowdStrike Holdings (CRWD – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mike Cikos from Needham maintained a Buy rating on the stock and has a $420.00 price target.
Mike Cikos has given his Buy rating due to a combination of factors that indicate strong future performance for CrowdStrike Holdings. The company has reported a robust quarter, with Net-New Annual Recurring Revenue (ARR) surpassing expectations and maintaining a stable Gross Retention rate of approximately 97%. Management is optimistic about accelerating Net-New ARR in the second half of fiscal year 2026, with further acceleration anticipated in fiscal year 2027.
Key indicators supporting this outlook include the significant role of Flex deals, which now represent over $2.5 billion in Total Contract Value, with more than 60% already deployed. Additionally, the upcoming renewal of Customer Commitment Packages, where discounts will lapse, is expected to bolster revenue. Despite making one-time investments in AI infrastructure, research and development, and platform resilience in fiscal year 2026, CrowdStrike anticipates an improvement in operating margin to around 23% by fiscal year 2027 and remains on track to achieve $10 billion in ARR by fiscal year 2031.
According to TipRanks, Cikos is a 5-star analyst with an average return of 10.6% and a 51.15% success rate. Cikos covers the Technology sector, focusing on stocks such as Dynatrace, Tenable Holdings, and Cloudflare.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $420.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com