DA Davidson backs CrowdStrike as strong growth meets high valuation
The broker reiterated its Buy rating and US$245 price target after CrowdStrike’s Fal.Con 2026 conference, while warning the stock leaves little room for disappointment.
DA Davidson has reiterated its Buy rating on CrowdStrike with a US$245 price target after attending the cybersecurity company’s Fal.Con 2026 user conference. The firm said discussions with customers and partners were positive, citing demand for AI Detection & Response and continued vendor consolidation.
CrowdStrike’s latest results provided further support for the bullish view. The company reported record fiscal second-quarter net new annual recurring revenue of US$333 million, up 51% year on year, and lifted its fiscal 2027 net new ARR growth guidance to 34% at the midpoint.
Falcon Flex ending ARR exceeded US$2.29 billion, representing 101% year-on-year growth. DA Davidson also expects CrowdStrike to provide an early indication of fiscal 2028 net new ARR growth, which could offer investors greater visibility into longer-term expansion.
The stock has already delivered substantial gains, rising more than 83% year to date as at 3 September, compared with a 13% gain for the S&P 500. It has returned more than 400% over three years, while the article cited a consensus Buy rating and a median 12-month price target of US$240.
Valuation remains the key constraint. CrowdStrike was reported to be trading at 172.41 times forward earnings, leaving the share price vulnerable to weaker Falcon Flex adoption, slower ARR growth or difficulty maintaining customer retention. The company also recorded a US$33.2 million GAAP operating loss in the fiscal second quarter, despite positive GAAP net income.
