In a report released today, Tal Liani from Bank of America Securities reiterated a Buy rating on CrowdStrike Holdings (CRWD – Research Report), with a price target of $420.00.
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Tal Liani has given his Buy rating due to a combination of factors that highlight both the strengths and challenges faced by CrowdStrike Holdings. The company’s recent performance showed strong annual recurring revenue and revenue growth, surpassing market expectations. This positive momentum is supported by significant traction across CrowdStrike’s platform, with substantial increases in deal value and adoption of multiple modules by customers.
Despite these strengths, there are some areas of concern, such as a deceleration in net revenue retention and lower-than-expected operating margin guidance. These issues are attributed to higher operational expenses and changes in stock-based compensation accounting. However, management expects these challenges to normalize in the second half of the year, with anticipated reacceleration in annual recurring revenue growth. Overall, the core fundamentals of CrowdStrike remain robust, justifying the Buy rating and a price objective of $420.
Liani covers the Technology sector, focusing on stocks such as Cisco Systems, Ciena, and Palo Alto Networks. According to TipRanks, Liani has an average return of 9.6% and a 55.83% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $450.00 price target.