On Friday, Argus made an adjustment to the price target for CrowdStrike Holdings (NASDAQ:CRWD), reducing it to $325 from the previous target of $400. The firm has maintained a Buy rating for the cybersecurity company's stock. The decision to lower the price target follows a software update from CrowdStrike that caused disruptions, which the analyst described as a "reputational black eye" for the company.
The analyst noted that CrowdStrike addressed the outage caused by the update with commendable transparency and efficiency, quickly releasing a patch and working with customers to reboot and recover. Additionally, new quality assurance systems have been developed to prevent a recurrence of such an event. Despite the setback, the firm's stance on CrowdStrike remains positive due to the company's robust recovery from a share price dip in early August.
The reduction in the price target also takes into consideration the company's revised full-year FY25 guidance and the ongoing effects of the disruption that occurred on July 19. The analyst pointed out that the likelihood of legal liability for the outage is minimal, as no lawsuits have been filed to date and customer terms of trade may offer protection.
The report from Argus indicates that the market has responded favorably to CrowdStrike's handling of the situation, with shares showing a strong rebound. The analyst emphasized that the company's transparent response and the steps taken to mitigate future risks reinforce the decision to continue recommending CrowdStrike as a Buy.
In other recent news, cybersecurity firm CrowdStrike Holdings has been the focus of various analyst adjustments following the release of their second-quarter results and revised future financial guidance. On one hand, TD Cowen lowered CrowdStrike's price target to $380 from $400 due to a downward revision in the fiscal year 2025 guidance. On the flip side, BMO Capital Markets raised the firm's price target to $315, believing the impact of a recent service outage to be less than initially anticipated.
CrowdStrike's second-quarter earnings exhibited a robust 32% growth in revenue and Annual Recurring Revenue (ARR), with strong performance in areas such as Cloud, Identity, and Next Generation Security Information and Event Management (SIEM). However, the company adjusted its full-year revenue forecast down by approximately $100 million, leading to expectations of a topline re-acceleration by the second half of fiscal year 2026.
Analyst firms including Piper Sandler, Rosenblatt Securities, and Canaccord Genuity have maintained positive ratings on the stock. Specifically, Canaccord Genuity lowered its price target to $330 but kept a Buy rating while Piper Sandler held steady with an Overweight rating and a target of $290.
InvestingPro Insights
As CrowdStrike Holdings (NASDAQ:CRWD) navigates through its recent challenges, insights from InvestingPro provide a deeper look into the company's financial health and market performance. With a substantial market capitalization of $68.67 billion, CrowdStrike is a significant player in the cybersecurity space. The company's robust revenue growth of 33.07% over the last twelve months as of Q2 2025 underscores its expanding market presence, despite trading at a high earnings multiple of 391.61, which suggests a premium valuation by the market.
An InvestingPro Tip worth noting is that CrowdStrike holds more cash than debt on its balance sheet, indicating a strong liquidity position that could help the company navigate unforeseen events or invest in growth opportunities. Moreover, the company is expected to be profitable this year, which is a positive sign for investors looking for long-term growth.
For those seeking more comprehensive analysis, InvestingPro offers additional tips, including 33 analysts' earnings revisions and valuation multiples, to help investors make informed decisions. There are 15 more InvestingPro Tips available, providing a detailed perspective on CrowdStrike's financial performance and market valuation.
Overall, CrowdStrike's ability to maintain liquidity and its expected return to profitability are key factors that may reassure investors, as reflected in the recent price target adjustment by Argus. The company's transparent handling of the software update disruption and proactive measures to prevent future incidents may further contribute to investor confidence.
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