CrowdStrike (CRWD) is drawing fresh attention from Wall Street following its recent 4-for-1 stock split, with two analysts lifting their price targets on the cybersecurity company's stock this week.

Cantor Fitzgerald analyst Jonathan Ruykhaver raised his price target on CrowdStrike to $250 from $181, keeping an Overweight rating on the stock. The move reflects the post-split price adjustment rather than a change in the firm's underlying view of the company. Truist also raised its target, moving to $245 from $187.50 while maintaining a Buy rating. Both ratings signal that the firms expect the shares to outperform the broader market. The update came as part of an off-cycle software earnings preview.

The split math itself is straightforward: a 4-for-1 split multiplies shares outstanding by four and divides the per-share price proportionally, leaving the company's market value and fundamentals unchanged. Analysts conventionally recalibrate their targets to the new share basis, which is why this week's revisions track the split rather than a wholesale change in how the firms value the business.

Channel Checks Signal Strength

At the ground level, conditions look solid for CrowdStrike. Cantor Fitzgerald's channel checks — surveys of the partners and resellers who sell a vendor's software — show 58% of partners are reporting results ahead of plan, and the firm says endpoint security continues to see share gains.

Truist described the setup as "constructive," pointing to resilient cyber spending as a tailwind heading into the company's next earnings report.

That said, both firms flagged that expectations are running high. Cantor Fitzgerald noted that an $8 million-plus annual recurring revenue beat and a guidance raise may be needed just to hold the stock at current price levels — the bar CrowdStrike has to clear. Annual recurring revenue, the subscription-software metric that captures the yearly value of recurring customer contracts, is a core number for a subscription-driven business like CrowdStrike — the yardstick against which that $8 million bar is set.

Where Cyber Budgets Are Moving

Truist flagged a shift in how cyber budgets are being allocated, with spending becoming more concentrated in identity security, cyber resilience, AI governance, data security, and platform consolidation. The shift is worth watching: while CrowdStrike remains a platform player, the concentration of budgets in these categories could shape how deals get prioritized.

Heading into earnings, Truist said it favors Rubrik and SailPoint, calling both well positioned for "beat-and-raise quarters." The preference maps onto those same budget categories: Rubrik specializes in data security and cyber resilience, while SailPoint is an identity-governance vendor. The firm's preference for those two names does not signal a negative view on CrowdStrike, but it does suggest other names may see more upside surprise in the near term.

Cantor Fitzgerald's channel checks also flagged continued endpoint share gains for CrowdStrike, which remains one of the company's core revenue drivers. CrowdStrike built that business on its cloud-native Falcon platform, which competes in endpoint protection against the likes of Microsoft, Palo Alto Networks and SentinelOne. The $250 target from Cantor and the $245 target from Truist both sit above where the stock was trading at the time of the notes, reflecting continued confidence in the company's trajectory.

The 4-for-1 stock split took effect recently, and both firms adjusted their targets accordingly to account for the new per-share share count and price structure.

In his note to investors, Ruykhaver highlighted that while the business fundamentals remain strong, the valuation is elevated enough that execution needs to be clean — there is not much room for disappointment at current levels.

Truist's broader software preview pointed to cyber spending holding up well across the software sector, which the firm sees as a supportive backdrop for CrowdStrike going into its next quarterly results, where the annual recurring revenue bar flagged by Cantor will be a key number to watch.

The most recent analyst actions put CrowdStrike's price targets in the $245 to $250 range post-split, with both firms keeping their positive ratings intact.

Source: CoinCentral