Wolfe Research Raises CrowdStrike Price Target to $450, Highlighting 23–24% ARR Growth
Shares rose 4% after Wolfe Research upgraded CrowdStrike to Outperform with a $450 price target, citing valuation at 13x forward revenue and 40x cash flow versus historical averages of 15.5x and 50.5x. The company reported $331 million in new ARR, up 47% YoY, and raised ARR growth guidance to 23–24%.
1. Wolfe Research Upgrade
Wolfe Research upgraded CrowdStrike to Outperform with a $450 price target and highlighted the company’s AI-driven security platform as well positioned to address escalating automated threats.
2. Valuation Metrics Below Historical
Valuation metrics now stand at 13x forward revenue and 40x cash flow based on 2027 projections, compared with three-year averages of 15.5x revenue and 50.5x cash flow, indicating less stretched valuations.
3. Quarterly ARR Growth and Outlook
In the most recent quarter, CrowdStrike generated $331 million in new annual recurring revenue, up 47% year-over-year, and raised its full-year ARR growth guidance to 23–24%.
4. AI Platform Adoption Impact
The Falcon platform now detects over 1,800 AI applications running on client devices, underlining how accelerated AI adoption may drive increased demand for cybersecurity solutions.