HSBC raised the target price for CrowdStrike and gave a ‘Buy’ recommendation.

HSBC’s ‘Buy’ Recommendation for CrowdStrikeHSBC raised its recommendation for CrowdStrike Holdings Inc. ( CRWD) from ‘Hold’ to ‘Buy’ in a note published on Friday, stating that the worst challenges faced by the company are now behind it. Analysts highlighted the cybersecurity firm’s strong performance in the second quarter of fiscal year 2025 (2QFY25) and the robustness of its long-term growth prospects, increasing the target price for the stock from $302 to $339.
2QFY25 Performance and Financial ResultsCrowdStrike recorded a 32% year-over-year increase in revenues in 2QFY25, slightly above market expectations. Despite a IT outage in July that caused delays in some contracts, the company exceeded market forecasts in non-GAAP operating income and reported a 41% year-over-year increase in non-GAAP earnings per share (EPS). Acknowledging the ongoing impact of the July incident, the company lowered its full-year guidance but still expects a strong 23% year-over-year revenue growth in the second half of FY25.
Long-Term Growth ProspectsHSBC stated, “In our view, the company’s long-term growth prospects remain robust.” They noted, “The company is exposed to some of the fastest-growing markets in the security sector.” The firm’s natural artificial intelligence design is seen as a structural advantage that sets it apart from competitors, and it is believed to be well-positioned for AI-focused growth. Analysts also pointed out that despite recent challenges, the company’s net new annual recurring revenue (ARR) continues to grow, particularly in hyper-growth business segments.
Future ExpectationsHSBC’s revised target price implies a 28.3% upside potential, reinforcing confidence in CrowdStrike’s ability to capitalize on future growth opportunities. The bank stated, “Now that the financial impact of the July incident is known, we believe that the bad news is behind us.” (Sigorta Haber)