JPMorgan cuts Crowdstrike target, removes from Analyst Focus List

JPMorgan lowered the firm’s price target on Crowdstrike to $330 from $400 and keeps an Overweight rating on the shares. The firm also removed the shares from its Analyst Focus List. The IT outage caused by a CrowdStrike Falcon content update file is damaging to CrowdStrike’s reputation, the analyst tells investors in a research note. However, the firm views the incident as a “black swan event” and thinks the quality of response from the company “will go a long way toward supporting the business and the brand longer term.” JPMorgan reduced its annual recurring revenue estimates by 13% for this year, with lower profitability and cash flow compared to previous estimates. However, it expects a return to better ARR and revenue growth with normalized profitability and cash flow in 2026 following a recovery period next year.