On Monday, Wells Fargo maintained a positive outlook on CrowdStrike Holdings (NASDAQ:CRWD), increasing the price target to $380 from the previous $315, while keeping an Overweight rating on the stock. The firm's stance comes in light of CrowdStrike's strong performance year-to-date, with a 23% increase compared to NASDAQ's 8.4% rise.
The analyst pointed to robust demand in the endpoint security market, noting that CrowdStrike's recent partnerships and product launches are expected to fuel growth in the fiscal year 2025. As the company prepares to release its fourth-quarter results for 2024 on Tuesday, March 5, at 5:00pm ET, there is anticipation for a report of around $266 million in net new Annual Recurring Revenue (ARR), a 20% year-over-year increase that surpasses the consensus estimate of $241 million.
The company's performance is supported by positive checks, which have shown significant strength with a 42% net increase, partly attributed to a fourth-quarter budget flush. Additionally, the comparison to the previous year's figures is favorable, as the company faces an easier comparison (+2% versus +52% last year).
Wells Fargo also anticipates that CrowdStrike's management will project revenues for the fiscal year 2025 to be approximately $3.94 billion, which would represent a 29% year-over-year increase, aligning with consensus expectations. This projection is set against the backdrop of the company's continued strong performance and the analyst's confidence in its growth trajectory.
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