CrowdStrike shares target raised to $355 on strong Q4 results

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CrowdStrike shares target raised to $355 on strong Q4 results
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On Wednesday, CrowdStrike Holdings (NASDAQ: CRWD ) received an updated price target from Oppenheimer, reflecting confidence in the company's recent performance and future prospects. The share price target was raised to $355 from the previous $300, while maintaining an Outperform rating on the stock.

The cybersecurity firm reported robust fourth-quarter results, surpassing estimates with a 27% year-over-year growth in net new annual recurring revenue (NNARR) and significant profitability gains, boasting a 25% operating margin and 33% free cash flow margin. These figures indicate that CrowdStrike has not been affected by spending fatigue and continues to see strong platform adoption. This is further supported by the 100% year-over-year increase in deals involving eight or more product modules.

CrowdStrike's Annual Recurring Revenue (ARR) for its emerging products, which include Cloud, Identity, and LogScale, has exceeded $850 million. The company's performance stands out relative to its peers, and the after-hours price reaction suggests that market expectations are set to rise.

Still, Oppenheimer believes that CrowdStrike is well-positioned to continue its successful platform selling motion and scale new products that are scheduled for release in FY25, such as Falcon for IT, Charlotte AI, and Advanced Security Posture Management (ASPM).

The firm's partnerships are also expected to contribute increasingly to its performance, which could lead to potential upside to the current FY25 outlook. The analyst has adjusted estimates to reflect the guidance provided by CrowdStrike and has raised the price target to $355 while maintaining the Outperform rating.

The analyst's comments reflect anticipation of continued execution and growth by CrowdStrike in the cybersecurity market.

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