Share Gains and Product Expansion Keep CrowdStrike Buoyant

The shift to remote employment as a result of the COVID-19 pandemic provided some tailwinds to cybersecurity technology stocks in 2020. These stocks are continuing to gain prominence in 2021 due to an increase in the frequency of ransomware attacks and the adoption of digital transformation initiatives.

One such company performing really well and receiving consistent analyst attention is CrowdStrike Holdings Inc. (CRWD), a modern cloud-based solution for the escalating security threats that the internet age has brought. (See CRWD stock charts on TipRanks)

Gray Powell of BTIG is positive on the stock and believes that CrowdStrike is capable of delivering healthy revenues in the long run.

Powell stated that CrowdStrike is confident in its ability to provide significant revenues in the coming years, owing to the widespread adoption of digital initiatives and cloud infrastructures. Furthermore, CrowdStrike anticipates new market opportunities arising as a result of the ongoing transition to the online trend, giving the analyst reason to be optimistic.

Powell noted that CrowdStrike expects to gain a share in the endpoint security space from Microsoft (MSFT). As Microsoft has been the root of some of the world's most serious security flaws, more customers are now reluctant to go all-in on MSFT security, creating new potential for CrowdStrike share gains.

According to the analyst, this potential share gain from former Microsoft customers may be a huge win for CrowdStrike.

Additionally, acquisitions have played an important part in driving CrowdStrike growth trajectory. The company recently acquired Humio, a data aggregation, storage and analysis tool. The analyst said that CRWD expects to use Humio's capabilities to increase its share in the SIEM (security and information event management) market. It will do so by assisting enterprises in gaining more visibility into their IT environments and better identifying security issues.

In addition, CrowdStrike stated that its cloud security portfolio and new Identity Protection modules have been witnessing strong demand, making the analyst positive about the stock.

In light of the factors mentioned above, Powell sees CrowdStrike valuation as compelling in the long term. He stated, “The company has the ability to maintain heightened (40%+) revenue growth over the next few years through both incremental share gains in its core endpoint target market and new product expansion.”

As a result, Powell maintained a Buy rating, and increased the price target to $302 from $256, suggesting a possible 12-month upside of 14.2%. CrowdStrike has gained 13.2% in the past six months and 149% over the past year.

On TipRanks, CRWD has an analyst rating consensus of Strong Buy, based on 18 Buy ratings and 1 Hold rating.  The average CRWD price target is $265.16, implying that shares are fully valued at current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on CrowdStrike, with 0.2% of investors maintaining portfolios on TipRanks increasing their exposure to CRWD stock over the past 30 days.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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