CrowdStrike Holdings saw its shares advance 4.4% to close at $429.64 on Friday, driven by an analyst upgrade from global bank HSBC. The firm raised its rating on the cybersecurity stock to buy from hold and established a price target of $446.
The upgrade arrived ahead of a U.S. market holiday and the company's scheduled fourth-quarter earnings report on March 3. Trading volume for the session reached approximately 3.4 million shares, surpassing the stock's 50-day average. Despite the gain, the share price remains roughly 24% below its 52-week high.
HSBC's bullish stance cites CrowdStrike's cloud-native platform and projects non-GAAP earnings per share to grow at an annualized rate of 38.3% from fiscal 2026 through 2029, supported by expanding margins. The move follows CrowdStrike's recent announcement that NordVPN selected its Threat Intelligence service to power a new consumer security product.
Other cybersecurity names also finished higher. Palo Alto Networks increased 2.5%, while Fortinet added 1.5% for the session.
The positive action for software stocks occurs against a backdrop of sector-wide pressure. The S&P 500 Software & Services index has declined significantly since October, with analysts noting investor concerns that artificial intelligence could disrupt existing business models.
Attention now turns to CrowdStrike's upcoming financial results and guidance. Market participants will scrutinize whether the company can alleviate growth anxieties and sustain momentum, especially if broader software sentiment remains fragile.
