11:00 AM EDT, 09/18/2025 (MT Newswires) -- CrowdStrike's ( CRWD ) fiscal 2027 net new annual recurring revenue growth target of over 20% year-on-year, compared to consensus of 14% to 15%, implied roughly 22% growth in ending ARR which was above investor expectations of 20%, Morgan Stanley said in a Thursday note.

Eyeing the company's investor briefing "positively," Morgan Stanley said it was encouraged by the company's targets and the extensive potential in its total addressable market as CrowdStrike ( CRWD ) continues to expand its platform.

Morgan Stanley also saw potential in the company's "security for artificial intelligence" offering, noting management's comments about how CrowdStrike's ( CRWD ) recent acquisition of Pangea, which offers AI threat detection, would contribute here.

Morgan Stanley said the company reiterated its guidance for operating margin guidance for 24%+ in fiscal 2027, as well as free cash flow margin of 27%+ exiting fiscal Q4 2026 and 30%+ for 2027, with management expecting Falcon Flex will likely become CrowdStrike's ( CRWD ) predominant contract structure and business model the near or medium term.

The firm rated CrowdStrike's ( CRWD ) as equal weight but raised its price target on the company to $475 from $460.

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