BTIG analyst Gray Powell has maintained their neutral stance on CRWD stock, giving a Hold rating yesterday.
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Gray Powell has given his Hold rating due to a combination of factors impacting CrowdStrike Holdings. The company reported solid fourth-quarter results, with annual recurring revenue (ARR) slightly exceeding expectations. However, the initial revenue guidance for the fiscal year 2026 was in line with expectations, while the operating income guidance fell short by 6% compared to street estimates. Additionally, concerns about free cash flow were highlighted, as increased discounting and bundling could support ARR but potentially harm cash collections.
Despite impressive growth in emerging products like Cloud, LogScale, and Identity, these components are decelerating faster than anticipated, partly due to customer commitment packaging. The impact of a July outage was more significant than expected, affecting net new ARR growth. Although the stock still trades at a high valuation, the slowing growth and uncertainty regarding the pace of reacceleration in fiscal year 2026 present a balanced risk-reward scenario, leading to the Hold rating.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $405.00 price target.
CRWD’s price has also changed dramatically for the past six months – from $259.320 to $390.160, which is a 50.46% increase.