Berenberg Downgrades CrowdStrike to Hold, Raises Target to $720 at 30x EV/S
CRWD•Berenberg downgraded CrowdStrike to Hold from Buy and raised its price target to $720 from $525, noting shares trade around $693 at roughly 30x forward enterprise value-to-sales. The company confirmed a 4-for-1 stock split effective July 2, 2026.
1. Downgrade to Hold
Berenberg downgraded CrowdStrike from Buy to Hold, citing limited upside at current valuation despite a robust fiscal 2027 start and strong AI-driven cybersecurity demand.
2. Valuation and Price Target Raised
The firm raised its price target to $720 from $525 after noting shares trade around $693 at approximately 30 times forward enterprise value-to-sales, marking a substantial premium to broader cybersecurity peers.
3. Growth Assumptions and Execution Risk
Berenberg’s model implies investors assume 15% long-term annual revenue growth and 19% free cash flow growth over the next decade, while warning that slower adoption of emerging products and potential service disruptions could curb upside.
4. Upcoming 4-for-1 Stock Split
CrowdStrike plans a 4-for-1 stock split effective July 2, 2026, aiming to improve share liquidity and broaden its investor base.
