Morgan Stanley upgrades CrowdStrike, cites strong performance

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Crowdstrike Intrinsic Value – CrowdStrike ($NASDAQ:CRWD) shares rose on Monday after investment firm Morgan Stanley upgraded the cyber security firm, noting continued momentum in the sector and the company’s strong performance. Analyst Hamza Fodderwala moved CrowdStrike shares to overweight from equal weight and kept the firm’s per-share price target of $215, noting that CrowdStrike is “one of the best-positioned companies” in the cybersecurity space. Fodderwala wrote that he expects the company to continue to gain market share and drive strong growth, given its “best-in-class product portfolio” and “go-to-market execution.” He also noted that the company’s recent partnership with Amazon Web Services could help it accelerate adoption of its Falcon platform. The company reported better-than-expected quarterly results last week, driven by strong growth in its subscription business. Looking ahead, Fodderwala said he expects CrowdStrike to continue to benefit from secular tailwinds in the cybersecurity market, including the shift to cloud computing and the need for enterprises to invest in protecting data. He also said the company’s “land and expand” strategy should help drive continued growth. “We believe CrowdStrike is still in the early innings of its growth story and believe it can continue to gain share and drive strong growth given its best-in-class product portfolio and go-to-market execution,” Fodderwala wrote in a note to clients.

Market Reaction

On Monday, CrowdStrike Holdings stock opened at $167.5 and closed at $169.0, up by 4.2% from the closing price on Friday.

VI Analysis – Crowdstrike Intrinsic Value

Company’s fundamentals reflect its long term potential. Crowdstrike Intrinsic Value is around $258, calculated by VI Line. Now CROWDSTRIKE HOLDINGS stock is traded at $161, undervalued by 37%. Now might be a good time to buy. The Crowdstrike Holdings, Inc. (CRWD) is an American cybersecurity technology company based in Sunnyvale, California. The company provides a cloud-based endpoint security solution delivered through a software as a service (SaaS) model.

Summary

CrowdStrike Holdings Inc. (CRWD) is a provider of cybersecurity solutions. They noted that the company’s strong performance and positive outlook warrant a higher valuation. The stock price of CrowdStrike increased by 4.2% on the news of the upgrade. We believe that CrowdStrike is a good long-term investment at current levels. The company has a strong product offering and is well-positioned to benefit from the growing global cybersecurity market.