DA Davidson Raises Crowdstrike Price Target by 49.1% After Astoundingly Strong Quarterly Results

DA Davidson's Rudy Kessinger raised their price target on Crowdstrike Holdings (NASDAQ: CRWD) by 49.1% from $285 to $425 on 2024/03/06. The analyst maintained their Strong Buy rating on the stock.

The company's quarterly results were described as "astoundingly strong," with a significant increase in the number of deals with 8+ modules and a record-breaking 250+ above-$1M total contract value deals. Crowdstrike's Q4 and FY 2024 print, released on March 5, showcased impressive performance.

For the fourth quarter of 2024, Crowdstrike reported earnings per share (EPS) of $0.95, beating the Zacks Consensus Estimate of $0.82 and marking a 102% increase from the previous year's $0.47. Revenue came in at $845.34 million, surpassing the Zacks Consensus Estimate of $839.05 million by 32.6% and outpacing Q4 2023's $637.37 million by the same margin. The company generated $347 million from operations and had a free cash flow of $283 million.

Looking at the full fiscal year 2024, Crowdstrike reported EPS of $3.09, a 100.6% increase from FY 2023's $1.54. Revenue for the year reached $3.06 billion, surpassing the previous year's $2.24 billion by 36.6%. The company generated $1.17 billion from operations and had a free cash flow of $938.2 million.

Management provided guidance for the first quarter of 2025, projecting an EPS range of $0.89 to $0.90 and revenue between $902.2 million and $905.8 million. For the full fiscal year 2025, Crowdstrike expects EPS between $3.77 and $3.97 and revenue in the range of $3.93 billion to $3.99 billion.

Crowdstrike President, CEO, and Co-founder George Kurtz expressed his satisfaction with the company's performance, highlighting the exceptional net new annual recurring revenue (ARR) growth of 27% year-over-year. He also mentioned that ARR reached a new high of $282 million, with the total ARR growing 34% year-over-year to reach $3.44 billion. Kurtz attributed customer preference for Crowdstrike to its single platform approach, which offers cloud security, identity protection, and next-gen SIEM solutions.

In addition to DA Davidson's analyst Rudy Kessinger, other analysts also updated their ratings and price targets for Crowdstrike on March 6, 2024. KeyBanc's Eric Heath raised their price target from $375 to $430 and maintained a Strong Buy rating on the stock. Mizuho's Gregg Moskowitz raised their price target from $360 to $390 and reiterated a Strong Buy rating. JMP Securities' Trevor Walsh raised their price target from $330 to $400 and maintained a Buy rating.

Notably, 100% of the top-rated analysts currently rate CRWD as a Strong Buy or Buy. There are no analysts who see it as a Hold, and none recommend or strongly recommend selling the stock.

Since Crowdstrike's latest quarterly report on March 5, 2024, the stock price has increased by 10.8%. Year-over-year, the stock has seen a significant growth of 158.3%. During this period, Crowdstrike has outpaced the S&P 500, which has only grown by 26.1%.

DA Davidson analyst Rudy Kessinger is ranked in the top 24% of Wall Street analysts by WallStreetZen, with an average return of 4.7% and a 46.7% win rate. Kessinger specializes in the Technology sector.

Crowdstrike Holdings, Inc. is a provider of cloud-delivered protection across endpoints and cloud workloads, identity, and data. The company offers a range of services including threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. Crowdstrike primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team and network of channel partners. The company has a global customer base. It was incorporated in 2011 and is headquartered in Austin, Texas.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.