Needham increased its price target on CrowdStrike Holdings Inc. to $250 from $235 while maintaining a buy rating, citing a solid quarter and an upgraded outlook for new annual recurring revenue.
The brokerage also kept its buy rating on the cybersecurity company’s shares, which were indicated at $206.47 in pre-market trading on Thursday, up 9.14% from Wednesday’s close of $189.18. CrowdStrike’s stock has gained 79% over the past 12 months, though InvestingPro noted it was trading above fair value.
Mike Cikos, analyst at Needham, said the firm maintained the buy rating and raised the price target to reflect CrowdStrike’s upgraded guidance. The company now projects new annual recurring revenue growth of 34% for fiscal 2027, an increase of 630 basis points from prior guidance and more than 10 percentage points above the initial outlook issued six months ago.
CrowdStrike reported $333 million in net new annual recurring revenue in the quarter, a 51% year-over-year increase and ahead of consensus estimates. The company attributed the performance to broad-based demand following what Cikos described as the "Mythos moment," alongside ongoing organizational modernization to keep pace with agentic AI.
Other brokerages also adjusted their targets. Stifel raised its target to $240 with a buy rating, while Cantor Fitzgerald, Scotiabank and TD Cowen each set their targets at $250 with overweight ratings. Baird maintained a neutral rating but lifted its target to $230.
CrowdStrike’s shares have surged 79% over the past year, reflecting strong investor confidence in its growth trajectory and expanding ARR base.
