Karishma Vanjani

CrowdStrike is likely to pull in more revenue than Wall Street expects, according to BTIG analyst Gray Powell.

He raised his rating on shares of the cybersecurity firm to Buy from Neutral and set a target of $431 for the price in a research note on Tuesday. That implies a gain of nearly 16% from the stock's close on Monday. It would mean that the stock doubles after plunging in July, when a defective software update by CrowdStrike disrupted operations at airlines, banks, and many other businesses.

The "IT outage [is] now eight months in the rearview mirror," Powell wrote. "And our checks the last few months lead us to believe that partners and customers have largely moved on from it."

BTIG says the market's expectations for annual recurring revenue for fiscal 2027 are too conservative. Even if CrowdStrike only recaptures revenue lost as a result of so-called customer commitment packages, or incentives to compensate for the outage, he expects the number to come in at least 2.5% above the consensus forecast, he said. A gain of "6% to 8% is much more likely," Powell wrote.

The market consensus for annual recurring revenue for fiscal 2027 is $6.116 billion, according to FactSet.

The stock was up about 5% to $391.94 in early trading on Tuesday, bringing its gain this year to 14% for the year.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 25, 2025 09:38 ET (13:38 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.