On Thursday, Piper Sandler kept its Overweight rating on shares of CrowdStrike Holdings (NASDAQ:CRWD) with a steady price target of $290.00. The firm's assessment follows CrowdStrike's second-quarter results, which were notably strong despite a two-week outage towards the end of the quarter.
The analyst from Piper Sandler highlighted the company's performance in key growth areas such as Cloud, Identity, and SIEM, which all saw growth exceeding 85% and collectively contribute over $1 billion in annual recurring revenue (ARR).
The analyst acknowledged the challenges faced during the quarter, including an outage that impacted the final two weeks. However, they emphasized the robust second-quarter results and a conservative outlook for the future that sets up what they believe to be a low bar for the company to surpass. This conservative guidance is seen as potentially the last significant hurdle for the company.
The report further detailed the impressive transactions in the aftermath of the incident, which were concentrated in the rapidly growing segments of CrowdStrike's business. These segments, Cloud, Identity, and SIEM, not only showed substantial growth but also now represent a significant portion of CrowdStrike's ARR.
Despite some expected fallout from the recent outage, Piper Sandler expressed confidence in the resilience of CrowdStrike's platform. The firm indicated that any negative impact from the outage has already been factored into the current financial projections for the company.
In conclusion, Piper Sandler's note reaffirmed a positive stance on CrowdStrike's stock, citing the company's strong quarter and the belief that the conservative outlook provided by the company could lead to future performance that exceeds expectations. The Overweight rating indicates the firm's confidence in the ongoing value proposition of CrowdStrike's platform to investors.
In other recent news, CrowdStrike Holdings faced financial adjustments due to a recent IT incident, affecting its fiscal year 2025 guidance. Rosenblatt Securities revised the company's price target to $325, while maintaining a Buy rating.
The firm's outlook for CrowdStrike's annual recurring revenue (ARR) and revenue for the third quarter of fiscal year 2024 and the full fiscal year 2025 was also updated. Other analyst firms including Needham, RBC Capital Markets, Cantor Fitzgerald, and Goldman Sachs (NYSE:GS) also adjusted their price targets and ratings on CrowdStrike's stock.
The company reported an annual recurring revenue (ARR) of $3.865 billion, a 31.9% year-over-year increase, and a record non-GAAP operating income of $227 million, a 46% growth from the previous year.
However, the company's full-year revenue forecast was adjusted downward by approximately $100 million, which includes a deferral of approximately $60 million in revenue from the second quarter as part of CrowdStrike's customer commitment package.
These recent developments are expected to impact CrowdStrike's financials into the first half of fiscal year 2026. Despite the challenges, CrowdStrike continues to receive positive feedback for its Falcon platform.
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