CrowdStrike Impresses With Solid Q3 Earnings, Analysts Remain Bullish Despite Tough Market

Shares of CrowdStrike Holdings Inc CRWD were climbing higher on Wednesday, after the company reported strong third quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Oppenheimer On CrowdStrike

Analyst Ittai Kidron maintained an Outperform rating, while raising the price target to $240.

CrowdStrike reported solid quarterly results, driven by NNARR (net new annual recurring revenue) growth and strong profitability gains, Kidron said in a note. “Demand was broad-based, with acceleration in growth for ITDR and Cloud Security and a record quarter for LogScale,” he added.

“While bears will point to the muted 4Q NNARR and revenue outlook, we believe management is prudently incorporating a high degree of conservatism with regard to a 4Q budget flush,” the analyst wrote. He further expressed optimism around CrowdStrike being able to sustain its momentum in 2024.

Needham On CrowdStrike

Analyst Alex Henderson reiterated a Buy rating, while lifting the price target from $245 to $250.
“Crowd delivered another robust quarter, beating estimates on every key metric,” Henderson wrote in a note. The earnings call and commentary were upbeat, although macro conditions continue to be challenging, he added.

“Crowd delivered solid growth in new customers and revenue per customer, greater RPO, and larger general deal sizes,” the analyst stated. He further mentioned that the company indicated “no erosion in October or November, and deal metrics are stable to slightly improved.”

Check out other analyst stock ratings.

KeyBanc Capital Markets On CrowdStrike

Analyst Eric Heath reaffirmed an Overweight rating, while raising the price target from $240 to $245.

CrowdStrike reiterated its fiscal 2024 NNARR guidance despite the third-quarter upside due to the challenging macro backdrop and “mgmt. not expecting a typical 4Q budget flush,” Heath said. “Mgmt. did, however, comment that the 4Q setup is strong with record pipeline,” he added.

“We continue to see CrowdStrike as a leader in endpoint security and a long-term consolidator with meaningful opportunity to expand into SIEM, CNAPP, identity, data security, and IT,” the analyst further wrote.

Goldman Sachs On CrowdStrike

Analyst Gabriela Borges maintained a Buy rating, while lifting the price target from $195 to $222.

The company indicated continued macro challenges and that “its incremental focus next year will be go to market scaling,” Borges said in a note.

“CrowdStrike noted a 150-person strong practice at E&Y driving business in next-gen SIEM, and LogScale is now north of $100mn in ARR,” the analyst wrote. “We view the Security Operations Center (SOC) transformation opportunity as a key driver of medium-term growth,” she added.

Mizuho Securities On CrowdStrike

Analyst Gregg Moskowitz reiterated a Buy rating, while raising the price target from $205 to $225.

CrowdStrike’s third-quarter results were “generally good,” with total ARR growth slightly surpassing estimates and an in-line revenue guidance for the fourth quarter, Moskowitz said.

“Demand trends appear solid for CRWD, as mgmt cited strong net new logo and expansion activity in F3Q, and a record quarter for US Federal,” the analyst wrote. CrowdStrike’s cloud platform “remains very differentiated,” its free cash flow margins remain around 30%, and “we see CRWD as a GenAI beneficiary,” he added.

CRWD Price Action: Shares of CrowdStrike were up 7.3% to $228.12 at the time of publication Wednesday.

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