CrowdStrike Holdings (CRWD – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Fatima Boolani from Citi maintained a Buy rating on the stock and has a $420.00 price target.
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Fatima Boolani’s rating is based on a combination of factors that highlight both the strengths and challenges facing CrowdStrike Holdings. The company demonstrated a solid performance with an annual recurring revenue (ARR) that slightly exceeded expectations, driven by a notable increase in net new ARR. This growth translated into a revenue increase that surpassed projections, contributing to an operating margin outperformance compared to consensus estimates.
Despite these positive aspects, the outlook for CrowdStrike presents some challenges. The revenue forecast for the upcoming fiscal year aligns with expectations, but the operating margin is anticipated to be slightly lower. Additionally, there are uncertainties surrounding free cash flow conversion, which could exert pressure on financial performance. These factors, along with accounting impacts and a higher non-GAAP tax rate, suggest a mixed financial outlook. However, the expected share price return of 7.6% supports the Buy rating, as the potential for growth remains attractive.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $420.00 price target.
Based on the recent corporate insider activity of 113 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRWD in relation to earlier this year.