Analyst Raises Crowdstrike Price Target by 17.6% as Non-Endpoint Revenue Surges

Barclays's Saket Kalia raised their price target on Crowdstrike Holdings (NASDAQ: CRWD) by 17.6% from $340 to $400 on 2024/03/06. The analyst maintained their Strong Buy rating on the stock.

After assessing Crowdstrike's Q4 and FY 2024 earnings report, Kalia highlighted that $850M in Annual Recurring Revenue (ARR), which accounts for approximately 25% of the total, came from non-endpoint sources. This significant contribution from non-endpoint revenue sources indicates the company's ability to diversify its revenue streams.

Crowdstrike Holdings, a provider of cloud-delivered protection across endpoints and cloud workloads, identity, and data, reported impressive financial results for Q4 2024. The company exceeded expectations with an EPS of $0.95, beating the Zacks Consensus Estimate of $0.82 by 15.9%. Furthermore, Crowdstrike's Q4 2024 revenue of $845.34M surpassed the Zacks Consensus Estimate of $839.05M by 0.7%.

For the full fiscal year 2024, Crowdstrike delivered outstanding performance. The company achieved an EPS of $3.09, surpassing the previous year's earnings of $1.54 by an impressive 100.6%. Moreover, Crowdstrike's revenue for FY 2024 reached $3.06B, demonstrating a substantial growth rate of 36.6% compared to the previous fiscal year.

In terms of guidance, management provided optimistic outlooks for Q1 2025 and FY 2025. For the first quarter of 2025, Crowdstrike expects an EPS ranging from $0.89 to $0.90 and revenue between $902.2M to $905.8M. Looking ahead to the full fiscal year 2025, the company anticipates an EPS in the range of $3.77 to $3.97 and revenue between $3.93B to $3.99B.

President, CEO & Co-founder George Kurtz expressed his satisfaction with Crowdstrike's Q4 performance, stating that the company achieved exceptional net new ARR growth of 27% year-over-year. Kurtz also emphasized the increasing preference of customers for Crowdstrike's single platform approach, with cloud security, identity protection, and LogScale next-gen SIEM solutions collectively representing more than $850M of the company's ending ARR.

The recent analyst rating from Barclays's Saket Kalia is not the only positive sentiment towards Crowdstrike. Other analysts have also updated their price targets and ratings for the stock on 2024/03/06. Eric Heath from KeyBanc raised their price target by 14.7% to $430 and maintained a Strong Buy rating. Gregg Moskowitz from Mizuho increased their price target by 8.3% to $390 and reiterated their Strong Buy rating. Trevor Walsh from JMP Securities raised their price target by 21.2% to $400 and maintained a Buy rating.

Interestingly, all of the top-rated analysts currently consider CRWD as either a Strong Buy or Buy, with no analysts recommending a Hold and none suggesting selling the stock. This positive sentiment from analysts reflects the confidence in Crowdstrike's future prospects.

From a performance perspective, CRWD's stock price has shown strong growth since the latest quarterly report on 2024/03/05. The stock has increased by 10.8% since the report, outpacing the broader market as the S&P 500 has risen by 26.1% during the same period. Furthermore, on a year-over-year basis, CRWD's stock has surged by an impressive 158.3%.

Barclays analyst Saket Kalia, who provided the recent price target increase, is ranked in the top 3% of Wall Street analysts according to WallStreetZen. With an average return of 11.5% and a win rate of 60.3%, Kalia specializes in the Communication Services, Healthcare, and Technology sectors. Their expertise in these areas likely contributes to their positive outlook on Crowdstrike.

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