Analysts maintain a broadly bullish stance on cybersecurity giant CrowdStrike Holdings Inc. (NASDAQ:CRWD) ahead of the company’s third-quarter results on Tuesday.
Strong ‘Consolidator’ In Agentic SOC
On Monday, Keybanc analysts raised the company’s Price Target to $570 per share, representing a 13% upside from current levels.
In the research note, analysts led by Eric Heath underscored their growing conviction in the company’s strategic positioning as a “consolidator” in the agentic SOC, or security operations space, as the core reasoning behind their “Overweight” rating, and increase in the target price.
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They did, however, highlight the potential lack of a strong earnings catalyst in the near-term, but maintained a positive outlook nonetheless.
Analysts Maintain Bullish Stance
Analysts at JPMorgan Chase weighed in on the stock on Monday by raising their price target to $580 per share, representing an upside of 15% from current levels.
Dan Ives of Wedbush Securities said that he expects the stock to report a “solid quarter” on Tuesday, while reiterating his “Outperform” rating, with a target of $600 per share. Ives said that the company is “in the early stages of capitalizing on [the] AI Revolution,” while noting that its consolidation strategy was showing strength.
CrowdStrike’s consensus Price Target stands at $534.16 per share, which marks an upside of 6% from its current levels, with the high end of the target at $640 per share, or 26.9%.
‘Sluggish’ Earnings And ‘Frothy’ Valuations Remain Concerns
Analyst Ed Carson, the News Editor at Investor’s Business Daily, discussed CrowdStrike’s third-quarter earnings on IBD’s podcast on Saturday, highlighting the company’s strong earnings growth, but “sluggish” earnings performance over the past year.
Carson noted that at least 12 analysts have boosted their price targets ahead of earnings, betting that growth is poised to accelerate. He added that the company now faces the challenge of converting that sentiment into real numbers.
With the stock currently trading at 109 times forward earnings and 29 times sales, Carson said, “It needs to generate real growth to justify that high valuation.”
Analysts at DA Davidson echoed similar concerns, noting that the valuations were “frothy” relative to peers, giving rise to uncertainty. The firm, however, reiterated its “Buy” rating on the stock, while raising its target from $515 to $580 per share, according to a report by Investing.
Stock Upbeat Ahead Of Earnings
CrowdStrike shares were down 0.99% on Monday, closing at $504.13, but are up 1.16% overnight, ahead of the company’s third-quarter results on Tuesday evening.
The stock scores high on Momentum in Benzinga’s Edge Stock Rankings, but does poorly on Growth. It has a favorable price trend in the Medium and Long terms. Click here for deeper insights into the company, how it compares with peers in the cybersecurity industry, and more.
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