CrowdStrike Holdings (CRWD) PT Raised to $405 at Evercore ISI, 'This One Was Another CRWD Pleaser'

Evercore ISI analyst Peter Levine raised the price target on CrowdStrike Holdings (NASDAQ: CRWD) to $405.00 (from $255.00) while maintaining a Outperform rating.

The analyst comments "Given the recent noise these past two weeks, this report on cyber sentiment is significant as we wrap up earnings season. CRWD’s strong close to the year and upbeat commentary into FY25 suggest that the issues which sparked concerns are likely idiosyncratic. Conviction heading into the print was mixed at best given all color commentary from its peers, and to see yet another CRWD quarter of consistent execution with a top and bottom-line beat should keep this one on the top of the leaderboard for now. While mgmt reiterated persistent macro pressures, our read on mgmt’s tone seemed that the environment remains “unchanged” today vs. 3-6 months ago. CRWD’s federal business remains strong, with no unusual activity to call out. Regarding CRWD’s platform commentary, they perceive themselves as a technology consolidator rather than a vendor consolidator. With now 28 modules, CRWD on average is seeing five modules adopted on all net new deals. Metrics regarding identity, SIEM, CloudSec continue to trend in the right direction. The highlight was the announced acquisition of Flow Security a cloud security tool for data security posture management (DSPM). This deal was purely a tech + team acquisition. Flow did not have any GTM, and will not contribute to ARR. CRWD called out early traction with Dell and Pax8. Charlotte AI went GA last week, with some paying customers. Net new ARR of $282mn (+29.7% y/y) came in well ahead of expectations. We did not get any real color into FY25 ARR as that was a data point most were hoping to get. We are modeling 10% net new ARR growth for FY25, below the 11% number we were hearing. The net new ARR midpoint for 1Q is ~12% and should trending higher q/q throughout FY25 on an absolute basis. Mgmt reiterated their 5yr-7yr $10bn ARR target. Factoring in what we believe to be yet another conservative 1Q and FY guide, solid new net ARR growth, stable NRR, record pipelines, higher win rates, and a continued focus on profitability + growth, give us enough confidence to reiterate our L/T thesis. Adj our PT to $405 (20x CY25 sales)."

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