On Wednesday, Macquarie maintained its Outperform rating on shares of CrowdStrike Holdings (NASDAQ:CRWD), while increasing the price target to $370 from $285.
The adjustment follows CrowdStrike's impressive financial performance, characterized by a robust year-over-year (Y/Y) growth in Annual Recurring Revenue (ARR) of 34% and a re-acceleration of net new ARR to 27% Y/Y.
CrowdStrike's performance was highlighted as meeting the Rule of 66, which refers to the balance between growth and profitability—a benchmark the company appears to have successfully achieved. The cybersecurity firm's emerging modules have notably doubled their ARR, surpassing $850 million, signaling strong demand and no signs of "cyber spend fatigue" in the market.
The analyst from Macquarie cited the company's re-acceleration at scale and leading profitability as the primary reasons for the raised price target. This confidence is further bolstered by CrowdStrike's record Q1 pipeline, which indicates potential for continued growth in the upcoming quarter.
CrowdStrike's recent financial report and the subsequent rating by Macquarie reflect the company's solid position in the cybersecurity industry.
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