CRWD Stock’s New Target Implies 18% Upside Potential – Needham Cites Growth From CrowdStrike's Flex Subscription Model

Needham raised its CrowdStrike price target to $310 from $250, maintaining a ‘Buy’ rating.

• Needham said initial migrations to Flex deliver an average 40% increase in annual recurring revenue, with subsequent “re-Flexes” creating further expansion opportunities.
• Earlier this week, BMO Capital raised its price target to $295 from $235, citing greater confidence in the durability of CrowdStrike’s growth after meetings with senior leadership.
• StoneX also raised its price target to $325 from $250 following an investor fireside chat and Q&A session with management.

CrowdStrike (CRWD) shares gained in morning trade on Friday as the broader market recovered, with Needham raising its price target on the stock to $310 from $250.

In a research note to investors cited by TheFly, Needham said conversations across the industry suggested CrowdStrike’s Flex model was helping customers expand their use of the company’s security products over time.

The firm said initial migrations to Flex deliver an average 40% increase in annual recurring revenue (ARR), with subsequent “re-Flexes” creating further opportunities for expansion.

CRWD stock rose nearly 2% in pre-market trade, on track to break its two-day slide after hitting a record high of over $286 on Tuesday. On Stocktwits, retail sentiment around the firm remained in ‘neutral’ territory over the past day. 

CrowdStrike’s Flex Model Could Drive Further Customer Spending

Needham noted that CrowdStrike’s Flex model gives customers more flexibility in how they consume the company’s cybersecurity products, allowing them to access multiple offerings through a consolidated subscription arrangement.

For CrowdStrike, the model can make it easier for existing customers to adopt additional products and expand their security deployments. That can increase revenue per customer without requiring the company to acquire an entirely new account.

Needham’s key argument is that this growth is not simply a timing shift. If Flex were merely pulling forward spending, customers would be expected to spend more initially but show less incremental demand later. Instead, the firm’s industry conversations suggest customers continue to expand their commitments after the initial migration.

Wall Street Bullish On CRWD Stock

Needham’s new price target of $310 on CRWD stock implies an upside of nearly 18% from Thursday’s close and 8% from its record high, hit earlier this week.

Needham’s hike follows two other price target increases this week. 

On Thursday, BMO Capital raised its price target to $295 from $235, maintaining an ‘Outperform’ rating. After hosting investor meetings with CrowdStrike’s senior leadership, BMO said it had greater confidence in the durability of the company’s growth. BMO’s revised target implies roughly 12% upside from Thursday’s close.

On Tuesday, StoneX raised its price target to $325 from $250, maintaining a ‘Buy’ rating. The firm cited an “insightful” investor fireside chat and a “productive” Q&A session with management. Its target implies roughly 24% upside from Thursday’s close.

CRWD stock has more than doubled this year, surging over 124%.

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