CrowdStrike (CRWD): Stephens Raises Target to $590 After Financial Model Update

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the AI Stocks Every Investor Should Watch. On October 9, Stephens raised the firm’s price target on the stock to $590 from $525 and kept an Overweight rating on the shares. The price target raise follows the firm’s detailed review of its financial model for CrowdStrike.

The firm calls it a model clean-up and keeps its positive fundamental view intact.

“We are making slight adjustments to our CrowdStrike estimates after revisiting the company’s recent ARR-to-subscription revenue modeling commentary and conducting a detailed review of our model. As part of this, we explicitly modeled in the ARR-to-revenue conversion headwinds — something we should have done previously. As a result, we are adjusting our 2HFY26 revenue progression with a slight reduction to F3Q26, a slight increase to F4Q26 with the net result being no change to our FY26 revenue estimate."

"We are also taking a more conservative approach with our FY27 ARR-to-revenue conversion assumptions resulting in modest decreases to our FY27 revenue, non-GAAP EPS, and FCF forecasts. We classify this as a model clean-up exercise, and there is no change in our positive fundamental view on CrowdStrike. Reiterate our Overweight rating and increase target to $590 from $525 based on an EV multiple of 23x our FY27 ARR estimate.”

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.

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