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On Tuesday, CrowdStrike Holdings (NASDAQ:) received an updated price target from Rosenblatt, with the firm expressing continued confidence in the cybersecurity company. The price target was raised to $375.00 from the previous $315.00, and the Buy rating was reaffirmed.
The firm’s anticipation for CrowdStrike’s earnings report, scheduled for release after the market closes on Wednesday, March 5th, is high. Analysts expect a robust earnings announcement with a forecasted revenue of $838M for the quarter, marking a 31.5% increase year-over-year. This estimate aligns with both the consensus among Wall Street analysts and the midpoint of the company’s own guidance. There is also an expectation of a bottom-line beat, surpassing the projected and Street’s preferred earnings per share (PF EPS) of $0.82, which fits within the management’s guidance range of $0.81 to $0.82.
Rosenblatt’s optimism is fueled by positive feedback from resellers and Chief Information Security Officers (CISOs), noting CrowdStrike’s reputation as the industry’s gold standard. Despite concerns over a slowdown in endpoint sales, the company’s performance remained strong towards the year’s end, and new customer acquisitions were highlighted. The Falcon platform’s breadth and its role as a consolidator in the market, particularly with the adoption of LogScale in the Next Gen Security Information and Event Management (SIEM) sector, have been key factors in the firm’s positive outlook.
The firm is also buoyed by the potential of CrowdStrike’s diverse product offerings, which include 27 security modules at various stages of growth. Specific solutions like Identity Protection, LogScale, and Cloud Security are expected to drive significant growth. Additionally, the increasing threat of AI-powered cyberattacks is seen as an opportunity for CrowdStrike’s Charlotte AI to thrive.
Reflecting this increased confidence, Rosenblatt has introduced forecasts for Fiscal Year 2026 and adjusted the valuation to 18 times the enterprise value to FY26 estimated sales, representing an anticipated 26% annual growth rate. This revised price target underscores the firm’s belief in CrowdStrike’s long-term success within the cybersecurity sector.
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