CrowdStrike’s stock has risen by about 8% this week, reaching around $386 per share, primarily due to an upgrade from BTIG. The stock peaked at $392 before seeing a slight decrease, maintaining a 4% increase on the same day.
BTIG analyst Gray Powell upgraded the stock from neutral to buy, setting a new price target of $431 per share, approximately 11% above the current price. This has prompted discussions on whether to buy the stock.
CrowdStrike Financial Performance
Despite revenue growth, CrowdStrike reported a net loss of $92 million in Q4 and a total net loss of $19 million for the fiscal year, a decline from the previous year’s profit.
An outage last summer affected its reputation and delayed deals, but Powell believes this issue is now resolved. He regards CrowdStrike as a strong player in the security software sector.
Looking ahead, CrowdStrike forecasts Q1 2026 revenue between $1.100 billion and $1.106 billion and aims for full-year revenue of $4.743 billion to $4.805 billion, reflecting a 20% increase over the last fiscal year. For fiscal 2027, annual recurring revenue is expected to reach between $6.225 billion and $6.579 billion, exceeding consensus estimates.
Stock Valuation Concerns
Although BTIG’s price target suggests growth potential, concerns remain regarding the stock’s valuation, particularly given a high P/E ratio and cautious guidance. Overall, recent performance calls for careful evaluation before investing.
CrowdStrike shares have climbed roughly 8% over the past week, now hovering around $386 each. That rise came largely off the back of Powell’s upgrade at BTIG, which set a higher price target and shifted the recommendation from neutral to buy. At one point, shares touched $392 before pulling back slightly, yet they still ended the day up by about 4%.
Powell’s revised target of $431 puts expected returns at around 11% from current levels, fuelling a debate over whether now is an opportune moment to buy in. While revenue continues to trend upwards, there are lingering concerns over profitability. The firm posted a net loss of $92 million in Q4, contributing to a full-year net deficit of $19 million. That marks a slide from the prior year’s profitability, which has not gone unnoticed.
Reputation matters in cybersecurity, and last summer’s service outage certainly dented confidence. However, Powell asserts that those problems have been put to rest, enabling the company to continue strengthening its position in the sector. If that assessment holds, it may alleviate some of the hesitation that followed the disruption, especially in relation to deal-making.
As we move forward, the company projects Q1 2026 revenue to land between $1.100 billion and $1.106 billion, with full-year expectations reaching as high as $4.805 billion. If those targets hold, that would represent a 20% increase compared to the previous fiscal year. Longer term, annual recurring revenue in fiscal 2027 is projected to fall between $6.225 billion and $6.579 billion, exceeding broader market expectations.
Although Powell’s bullish stance has given the stock a boost, valuation concerns persist. The high price-to-earnings ratio stands out, particularly in light of cautious guidance. From the perspective of derivatives traders, these factors shape the situation in the weeks ahead.
