- RBC capital Analyst Matthew Hedberg claims CrowdStrike Holdings Inc CRWD if you outperform, the target price will stand out $160 to $170.
- The analyst returned from the investor briefing with a better assessment of CrowdStrike’s platform differentiation versus competitors, in particular microsoft corp MSFTits growth initiatives and the path to achieving long-term goals.
- Management reiterated the original ARR target of over $5 billion by FY26 in addition to over $10 billion in ARR without providing a timeline.
- CrowdStrike’s key growth drivers include 1) growth of new logos among subscription customers; 2) Success with top accounts with minimum ARR in FY23 required; 3) Attracting and growing clients of all sizes, with the majority of new logos coming from the low end of the market, while the majority of ARR is coming from the high end of the market; 4) acquisition of several modules; and 5) more significant lands.
- As such, the analyst believes there are incremental opportunities with new modules (Discover, Spotlight, Identity and LogScale) and the public cloud.
- Finally, the company remains focused on improving leverage while investing in growth, with FCF margins expected to exceed 30% for the foreseeable future.
- Overall, Hedberg believes CrowdStrike remains in a solid position to consolidate security spending and gain market share while delivering stable growth at scale and sustained profitability.
- Needham Analyst Alex Henderson sticks with a Buy on CrowdStrike, raising price target to $170 from $165.
- At the upbeat investor briefing, CrowdStrike offered a strong, positive tone, a compelling strategy with robust long-term goals while addressing the critical parts of the bear camp thesis.
- The analyst came away with an reinforced belief that CrowdStrike delivers a robust and multifaceted platform that addresses a wide range of security challenges in a comprehensive and integrated manner.
- CrowdStrike…
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