Bernstein Downgrades CrowdStrike Holdings (LSE:0A3N)

On June 6, 2025, Bernstein downgraded CrowdStrike Holdings (LSE: 0A3N) from Outperform to Market Perform, with the average analyst one-year price target suggesting an 11.94% downside. Despite the downgrade, CrowdStrike's projected annual revenue is $5.234 billion, a 26.55% increase, and non-GAAP EPS is projected to rise 19.01% to $4.79. Fund sentiment remains positive, with a 2.60% increase in the number of funds holding positions and a 3.55% increase in total shares owned by institutions.

Analysis

CrowdStrike Holdings (LSE:0A3N) experienced a notable analyst action on June 6, 2025, with Bernstein downgrading the stock from Outperform to Market Perform. This revision is accompanied by an average one-year price target of 417.17 GBX, which, as of June 2, 2025, suggested an 11.94% downside from its then-closing price of 473.75 GBX. Despite this cautious analyst outlook and a slightly negative per-ticker sentiment for CRWD (-0.2), the company's fundamental growth projections remain robust. CrowdStrike is forecast to achieve annual revenue of 5,234MM, marking a significant 26.55% year-over-year increase, and projected annual non-GAAP EPS is set at 4.79, up 19.01% from prior forecasts. Institutional sentiment appears broadly positive, with the number of funds reporting positions increasing by 2.60% to 2,761 in the last quarter, and total shares owned by institutions rising by 3.55% to 195,332K shares. Major holders like Vanguard's VTSMX and VFINX increased both their share counts (by 0.84% and 7.96% respectively) and portfolio allocations (by 8.40% and 14.32% respectively). However, while Jennison Associates and Geode Capital Management also increased their shareholdings by 17.43% and 7.99% respectively, they notably decreased their portfolio allocations in 0A3N by 23.44% and 39.92% respectively over the last quarter, indicating a potential rebalancing or a more tempered conviction relative to their overall portfolios.

Key Decisions for Investors

• Investors should carefully weigh Bernstein's downgrade and the projected 11.94% price downside against CrowdStrike's strong projected revenue and EPS growth of 26.55% and 19.01% respectively.
• Monitor institutional ownership trends, paying particular attention to changes in portfolio allocation by major funds, as decreases in allocation by firms like Jennison Associates and Geode Capital Management, despite share increases, may signal nuanced shifts in conviction.
• Consider the current valuation and risk-reward profile, balancing the positive fundamental outlook and broad institutional buying against the specific analyst concerns regarding near-term price performance.