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Summary

  • Truist Securities upgraded CrowdStrike Holdings Inc. (NASDAQ: CRWD) to a ‘Buy’ rating following the company’s Q1 ’24 release.
  • CRWD has a mean recommendation rating of 1.8 on a scale of one to five, with a total of 46 analysts covering the stock.
  • The consensus mean price target on the stock is US$ 175.56, which is 17.64% higher than its closing price of US$ 149.23 on June 7, 2023.

CrowdStrike Holdings Inc. (NASDAQ: CRWD) received a rating upgrade from Truist Securities post the release of its financial results for Q1 FY24. On May 31, 2023, the cybersecurity giant reported revenue of US$ 692.6 million for Q1 of fiscal 2024. This quarter’s revenue marked a 42% jump from Q1 2023 revenue of US$ 487.8 million.

CrowdStrike is a provider of cybersecurity products and services for which its major clients are large organizations. The company’s products offer cloud-driven solutions for security related issues and facilitate IT operations management.

Truist Securities upgraded its rating on the stock to ‘Buy’ a day after the release of the company’s financial results. The broker’s price target on CRWD was US$ 175, a 17.27% upside potential over its closing price on June 7, 2023.

CRWD Price Chart; Image Source: EODHD/Others

CrowdStrike closed at a price of US$ 149.23 on June 7, 2023. CRWD hit its 52-week high of US$ 205.73 on August 11, 2022.

A consensus ‘Buy’ rating on CRWD

As per data available on EODHD/Others, CRWD has a mean recommendation rating of 1.8 on a scale of one to five. Here, one stands for a ‘Strong Buy’ rating and five stands for a ‘Strong Sell’ rating.

A total of 46 analysts have covered the stock, among which a majority of 28 analysts recommended a ‘Buy’ rating on CRWD. Meanwhile, 13 analysts have given it a ‘Strong Buy’ rating and 5 analysts have given it a ‘Hold’ rating.

At the same time, the consensus mean price target on the stock is US$ 175.56, which is 17.64% higher than its closing price on June 7, 2023.

Rosenblatt Securities retained its ‘Buy’ rating on stock and upgraded its price target to US$ 175 post the company’s Q1 announcement. Scotiabank maintained its ‘Sector Outperform’ rating on CRWD, while Piper Sandler also maintained an ‘Overweight’ rating on CRWD. Needham & Company retained its ‘Buy’ rating and JMP Securities also retained ‘Market Outperform’ rating on the stock.

Image source: ©2023 Kalkine®; Data source: CRWD EODHD/Others

Notably, Westpark Capital upgraded the stock to a ‘Buy’ rating and maintained a price target of US$ 203, which is 36.03% higher than Wednesday’s close price.

How did CrowdStrike perform in the first quarter of fiscal 2024?

CrowdStrike’s total revenue for the quarter was US$ 692.6 million. Its annual recurring revenue was US$ 2.73 billion as of April 30, 2023, of which US$ 174.2 million was added in Q1 2024. The subscription revenue in the first quarter of fiscal 2024 was US$ 651.2 million.

The net income attributable to CrowdStrike was US$ 500,000 in Q1 of fiscal 2024, as against a net loss of US$ 31.5 million in Q1 of fiscal 2023. The net cash generated from operations during the quarter was US$300.9 million, while the free cash flow was reported to be US$ 227.4 million.

The cash, cash equivalents and short-term investments were reported to be US$ 2.93 billion as on April 30, 2023.