Price Target on CrowdStrike (CRWD) Raised by Japanese Bank After Layoffs

Japanese bank Mizuho Securities increased its price target on IT security giant CrowdStrike (CRWD) to $425 from $410 today.

Mizuho remains upbeat on the company's leadership team after it announced that it would lay off about 5% of its workforce. CRWD also reported that its first-quarter financial results would meet or exceed its previous guidance.

Mizuho's Views on CRWD

CRWD's workforce reduction was unexpected, Mizuho reported. Nevertheless, Mizuho believes that the firm's management team is "very thoughtful and pragmatic." What's more, CRWD's leaders are "highly focused on profitably scaling the business," the bank added.

Mizuho also is impressed by the firm's high gross margin of almost 75%. Moreover, Mizuho praised CRWD's marketing strategy, its cloud security platform, and its move into new IT security markets.  Finally, the bank believes that the company is highly efficient.

More Information About CRWD

Analysts on average expect the firm's earnings per share to fall to $3.45 this year from $3.93 in 2024. However, the mean estimate calls for its EPS to jump to $4.60 in 2026.

In the last month, the stock has gained 12%, while the shares have risen 1% in the last six months.

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Disclosure: None. This article is originally published at Insider Monkey.