CrowdStrike (CRWD) is facing a mixed setup into Q4 amid positive longer-term story, UBS said in a Tuesday report. The company will release its Q4 results March 4.
"We see a more mixed setup into 4Q, even in spite of the recent rotation out of momentum," UBS said.
"With the discounting programs creating a wider range of possibilities from an income statement perspective, we think a material 4Q NNARR beat and any FY26 NNARR framework that supports the 2H reacceleration should be enough," the note said. NNARR refers to net new annual recurring revenue.
The report also said investor conversations focused on potential risk to FY26 revenue/free cash flow estimates, but they still skewed positive on company fundamentals.
"As long as CRWD can reiterate the LT model and growing exposure to areas like cloud/SIEM, we would expect near-term weakness gets bought," the note said.
UBS raised its price target to $450 from $396 while keeping its buy rating.
Price: 398.00, Change: +18.25, Percent Change: +4.81
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