TLDR
- CrowdStrike shares surged 4.4% to $429.64 on Friday, with trading volume 11% higher than average, indicating robust investor demand following a recent decline.
- HSBC raised its rating on the stock from Hold to Buy, setting a $446 price target and praising the company’s leadership in essential cybersecurity and AI-powered threat detection.
- The firm is broadening its reach from enterprise clients to the consumer market via a significant partnership with NordVPN and national cybersecurity agreements, opening up new revenue streams.
- Analysts hold a Moderate Buy consensus with an average price target of $552.17, although Rosenblatt reduced its target from $630 to $555.
- CrowdStrike was named a Customers’ Choice in the Gartner Peer Insights report for user authentication, confirming the product’s quality and its role in maintaining enterprise clients.
On Friday, CrowdStrike’s stock price increased by 4.4% to $429.64, after touching a high of $432.85 during the trading session. Trading volume reached around 3.44 million shares, which was approximately 11% higher than the recent daily average of 3.1 million shares.
The stock’s rise coincided with an upgrade from HSBC, which moved its rating from Hold to Buy and established a $446 price target. The bank emphasized CrowdStrike’s cloud-native architecture and its scaling benefits in threat detection powered by artificial intelligence and machine learning.
HSBC forecasts a non-GAAP earnings per share compound annual growth rate of 38.3% through fiscal 2029. This outlook is supported by anticipated revenue growth of 27.5% CAGR and an operating margin improvement of 775 basis points.
The bank pointed out that CrowdStrike’s present non-GAAP operating margin of 21.6% could potentially grow to match the 40%+ margins achieved by mature software companies. This growth potential supports the stock’s premium valuation of 81.2x the calendar year 2026 non-GAAP P/E ratio, compared to the sector median of 22.4x.
CrowdStrike is making a move into the consumer cybersecurity space by forming a partnership with NordVPN. The virtual private network provider has chosen CrowdStrike’s technology to provide Threat Protection for its millions of users, establishing a substantial reseller arrangement.
Consumer Market Push
The company is also engaging in national cybersecurity contracts, which extends its potential market beyond its conventional enterprise base. This strategy of diversification is intended to generate new sources of recurring revenue.
CrowdStrike was awarded the Customers’ Choice designation in the Gartner Peer Insights report for User Authentication. This endorsement helps strengthen customer loyalty and creates opportunities for selling additional services as clients broaden their use of CrowdStrike’s security products.
The overall analyst sentiment remains a Moderate Buy rating for the stock. The average price target is $552.17, suggesting approximately 29% potential growth from Friday’s closing price.
A number of analyst firms have recently increased their targets to around the $600 mark. Susquehanna boosted its target from $530 to $600, and Berenberg Bank established a $600 target. Citigroup raised its target from $595 to $610.
In contrast, Rosenblatt Securities decreased its price target from $630 to $555, while keeping a Buy rating. This adjustment indicates more conservative expectations for short-term gains, despite a still favorable long-term outlook.
Analyst Activity
Morgan Stanley increased its target from $515 to $537, maintaining an Equal Weight rating. Following the company’s December earnings report, BNP Paribas Exane raised its target from $350 to $450 with a Neutral rating.
In early December, CrowdStrike announced third-quarter earnings that exceeded analyst predictions. The company reported adjusted earnings per share of $0.96, compared to the anticipated $0.94. Revenue came in at $1.23 billion, slightly above the forecast of $1.22 billion.
Revenue for the quarter showed a year-over-year increase of 21.8%. The company reported a negative net margin of 6.88% and a negative return on equity of 2.12% as it continues to allocate funds towards expansion.
On February 4th, CEO George Kurtz sold 28,853 shares at an average price of $413.01, for a total value of approximately $11.9 million. This sale reduced his direct holdings by 1.38%, leaving him with 2.05 million shares.
CFO Burt Podbere sold 10,516 shares on December 22nd at a price of $483.33 per share, amounting to $5.08 million. This transaction represented a 5.55% reduction in his stake, with 179,114 shares remaining.
The company’s market capitalization is $108.31 billion. CrowdStrike’s 50-day moving average is $462.19, and its 200-day moving average is $473.57, showing the stock is still trading below recent technical levels despite the gain on Friday.
