Canaccord Genuity Downgrades CrowdStrike Holdings (CRWD) to Hold
Canaccord Genuity analyst Kingsley Crane downgraded CrowdStrike Holdings (NASDAQ: CRWD) from Buy to Hold with a price target of $475.00 (from $420.00).
The analyst comments: "While we're encouraged by some early expansionary proof points within the Flex customer base and view CrowdStrike's business operations since the July 19th incident as nothing short of remarkable, we simply view risk/reward as more balanced at these levels with shares trading near 21x CY26 sales and 70x CY26 FCF for a ~20% top-line grower nearing a terminal FCF margin profile (we are modeling slightly above 30% FCF margins in CY26). That is to say, we applaud CrowdStrike's success but think further upside to our model could be increasingly difficult to achieve with 2H net-new ARR already contemplating a material ramp as well as a topline yoy acceleration in CY26. We are downgrading to a HOLD rating while raising our PT to $475 (from $420), reflecting 20x EV/sales and 68x EV/FCF on our C2026 estimates. We continue to value CRWD at a premium to cyber peers with similar growth rates, given its strong track record of execution, relatively high visibility into ARR growth, and category leadership across multiple arenas within cybersecurity."
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Shares of CrowdStrike Holdings closed at $488.76 yesterday.