UBS Analyst Raises Crowdstrike Price Target by 11.7% and Maintains Strong Buy Rating

UBS's Roger Boyd raised their price target on Crowdstrike Holdings (NASDAQ: CRWD) by 11.7% from $385 to $430 on 2024/03/06. The analyst maintained their Strong Buy rating on the stock.

Crowdstrike, a leading provider of cloud-delivered protection across endpoints and cloud workloads, has recently posted impressive results and provided positive guidance for the future. In their Q4 and FY 2024 earnings report, released on March 5, the company reported "very strong" results, beating expectations and showing significant growth.

For the fourth quarter of 2024, Crowdstrike reported earnings per share (EPS) of $0.95, surpassing the Zacks Consensus Estimate of $0.82 and showing a remarkable 102% increase compared to Q4 2023. Revenue for the same period stood at $845.34 million, exceeding the Zacks Consensus Estimate of $839.05 million and showing a growth rate of 32.6% compared to Q4 2023.

The company's performance for the full fiscal year 2024 was equally impressive. Crowdstrike reported EPS of $3.09, surpassing FY 2023's EPS of $1.54 by 100.6%. Revenue for FY 2024 reached $3.06 billion, marking a 36.6% increase from FY 2023.

Furthermore, Crowdstrike generated $347 million from operations in Q4 2024 and had free cash flow of $283 million. For the full fiscal year 2024, the company generated $1.17 billion from operations and had free cash flow of $938.2 million.

Looking ahead, Crowdstrike's management provided optimistic guidance for Q1 2025 and FY 2025. They expect EPS for Q1 2025 to be in the range of $0.89 to $0.90, with revenue projected to be between $902.2 million and $905.8 million. For the full fiscal year 2025, the company anticipates EPS in the range of $3.77 to $3.97, with revenue expected to be between $3.93 billion and $3.99 billion.

UBS analyst Roger Boyd, who is ranked in the top 19% of Wall Street analysts by WallStreetZen, expressed confidence in Crowdstrike's future prospects. By raising the price target on CRWD from $385 to $430, Boyd is signaling a strong belief in the company's continued growth potential. With an average return of 16.7% and a 57.1% win rate, Boyd specializes in the Technology sector.

Boyd's positive sentiment is echoed by other analysts who have recently updated their ratings on Crowdstrike. Eric Heath from KeyBanc raised their price target by 14.7% from $375 to $430 and maintained a Strong Buy rating on the stock. Gregg Moskowitz from Mizuho also raised their price target by 8.3% from $360 to $390, reaffirming their Strong Buy rating. Trevor Walsh from JMP Securities raised their price target by 21.2% from $330 to $400 and maintained a Buy rating.

The consensus among top-rated analysts is overwhelmingly positive for Crowdstrike. 100% of the top-rated analysts currently rate CRWD as a Strong Buy or Buy. None of the analysts see it as a Hold, and no analysts recommend selling the stock.

Investors have responded positively to Crowdstrike's recent performance. Since the release of the company's quarterly report on March 5, the stock price has risen by 10.8%. Additionally, Crowdstrike's stock has seen substantial year-over-year growth, with a remarkable increase of 158.3%. During this period, CRWD has outperformed the broader market, with the S&P 500 showing a growth rate of 26.1%.

Crowdstrike continues to solidify its position as a leader in the cybersecurity industry. President, CEO, and Co-founder George Kurtz highlighted the company's exceptional Q4 performance, emphasizing net new ARR growth and the increasing adoption of CrowdStrike's single platform approach by customers. Kurtz also emphasized that Crowdstrike is the "consolidator of choice, innovator of choice, and platform of choice" in the cybersecurity field.

Crowdstrike Holdings, Inc., founded in 2011 and headquartered in Austin, Texas, offers a comprehensive range of cloud-delivered protection and security solutions. The company's Falcon platform and cloud modules are sold through direct sales and channel partners, serving customers worldwide. With its strong financial performance and positive analyst ratings, Crowdstrike remains a premium asset deserving of premium valuation, according to UBS analyst Roger Boyd.

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