7 CrowdStrike Holdings Analysts Dissect The 'Solid' Beat And Raise Quarter

Shares of CrowdStrike Holdings Inc CRWD spiked in the premarket on Wednesday, a day after the company reported its fourth-quarter results.

• Needham analyst Alex Henderson maintained a Buy rating and price target of $165.
• Cantor Fitzgerald analyst Jonathan Ruykhaver reiterated an Overweight rating and price target of $160.
• Guggenheim Securities analyst Raymond McDonough reaffirmed a Buy rating and price target of $147.
• Mizuho Securities analyst Gregg Moskowitz maintained a Buy rating and price target of $175.
• JMP Securities analyst Trevor Walsh reiterated a Market Outperform rating and price target of $235.
• Stephens analyst Brian Colley reaffirmed an Overweight rating, while raising the price target from $161 to $173.
• RBC Capital Markets analyst Matthew Hedberg maintained an Outperform rating, while raising the price target from $150 to $160.

Check out other analyst stock ratings.

Needham

CrowdStrike not only reported better-than-expected quarterly results, but also announced “FY1Q and full year guidance ahead of consensus and reiterated ARR growth expectations of low-30% in FY24, implying flat to modestly up NNARR,” Henderson said in a note.

“While macro continues to pressure budgets, FY4Q did not worsen sequentially despite minimal budget flush and CRWD added record new logos, growing customer count 41% yr-yr to >23k,” he added.

Cantor Fitzgerald

“CrowdStrike delivered a solid all-around performance in F4Q23, surpassing FactSet consensus estimates for revenue, EPS, and free cash flow (record level),” Ruykhaver stated.

“Although management suggested that a still-challenging macro environment exists, this quarter's execution appears to have put to rest some of the cautionary overhang we and the Street foresaw coming into the quarter,” he added.

Guggenheim Securities

“CrowdStrike’s F4Q23 was solid given the macro backdrop,” McDonough wrote in a note. “Guidance looks reasonable and attainable,” he added.

“The company has demonstrated its resilience and pivoted quickly to the mid-market and SMB, and this has driven new signings as more sophisticated large enterprise customers seem to have become more deliberate in IT purchases across the Software space (i.e., longer sales cycles),” the analyst further wrote.

Mizuho Securities On CrowdStrike Holdings

“FY24 guidance was largely as expected, and in our view leaves room for upside if CRWD continues to execute as we believe it can,” Moskowitz said.

“Despite a more challenging macro backdrop, we continue to believe that CRWD’s cloud platform remains highly differentiated, its GTM is unrivaled, the co. is demonstrating clear success extending beyond traditional endpoint security markets, and FCF margins remain ~30%,” he added.

JMP Securities

“CrowdStrike signed a record 1,873 new customers in the quarter after a notable decline in that metric in F3Q23,” Walsh wrote in a note. “The new logos, combined with strong upsell/cross-sell business (reflected by a net retention rate of 125.3% for F4Q23), led to record new ARR of $222M,” he added.

“Management also advised that the pipeline heading into F1Q24 has reached record levels despite continued elongation of deal cycles as a result of macro challenges,” the analyst further stated.

Stephens

The company’s quarterly results exceeded expectations across the board, Colley mentioned.

The stock offers “an attractive risk/ reward for a best-in-class cybersecurity asset that is well-positioned to deliver long-term durable growth at scale with multiple secular and company-specific drivers, industry-leading technology/competitive positioning, and strong 30%+ FCF margins,” he added.

RBC Capital Markets

“With a record pipeline entering FY/24, revenue and ARR guidance was ahead of consensus on an absolute basis although the growth rate was in line with prior guidance,” Hedberg said.

“We see this as a good starting point with an opportunity to build from here,” he added.

CRWD Price Action: Shares of CrowdStrike Holdings had risen by 4.94% to $131.10 in the premarket session on Wednesday.