Scotiabank raises CrowdStrike stock target to $400 on strong 4Q

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Scotiabank raises CrowdStrike stock target to $400 on strong 4Q
Credit: © Reuters.

On Wednesday, Scotiabank adjusted its outlook on CrowdStrike Holdings (NASDAQ: CRWD ), a leader in cloud-delivered endpoint and cloud workload protection, by increasing the stock price target to $400 from the previous $320.

The firm maintained its Sector Outperform rating on the stock. This move follows CrowdStrike's impressive fourth-quarter performance, which showcased significant growth in both revenue and earnings.

The company's net new Annual Recurring Revenue (ARR) growth has accelerated for the second consecutive quarter, surpassing the high expectations of investors observed over the recent months. The analyst noted that the trend of consolidating onto CrowdStrike's platform, as indicated by their fieldwork, is gaining broader adoption.

The firm anticipates that the segments of cloud security, identity, and logs will continue to expand from their current contribution of approximately 25% of CrowdStrike's business.

CrowdStrike's financial health has been notably robust, with the company achieving GAAP profitability for four consecutive quarters. This consistent performance may position CrowdStrike for potential inclusion in the S&P 500 index , a milestone that could attract further interest from long-only investors.

Despite the stock's near 200% year-over-year surge, Scotiabank advocates for CrowdStrike as an essential holding in technology portfolios, based on the company's strong market position and growth prospects.

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