Scotiabank has raised its price target on CrowdStrike Holdings Inc. to $250 from $227, maintaining a Sector Outperform rating as the cybersecurity firm’s annual recurring revenue growth accelerates.
The upgrade follows CrowdStrike’s second-quarter results, which showed new annual recurring revenue growth of 51% year-over-year, up from 25% in the prior quarter. Analysts also highlighted the company’s fiscal 2027 guidance calling for 34% new ARR growth, with Jefferies estimating total ARR of $6.608 billion for the year. Baird separately noted a 26% revenue increase and a 25% rise in annual recurring revenue.
Scotiabank’s call aligns with a broader trend among peers. TD Cowen and Mizuho both set price targets of $250, while Baird raised its target to $230 and Jefferies to $240. Citizens maintained a Market Outperform rating with a $230 target. CrowdStrike shares were trading at $189.18 at the time of the report, up 79% over the past year.
Management indicated no unusual deal timing distortions and pointed to accelerating demand for core endpoint products and new modules. Scotiabank cited broad-based demand among chief information security officers, driven by what the firm termed "Mythos Preparedness"—a shift toward modernizing security stacks to counter advanced threats, including those posed by AI.
Customers are increasingly deploying CrowdStrike’s AIDR and Shield products to secure AI usage and protect against evolving risks. While acknowledging the stock’s elevated valuation, Scotiabank described CrowdStrike as a medium-term compounder and a key platform for AI-driven security amid a "new risk environment from advanced AI." InvestingPro analysis, however, flagged the stock as overvalued relative to its fair value estimate.
