Tal Liani, an analyst from Bank of America Securities, maintained the Buy rating on CrowdStrike Holdings (CRWD – Research Report). The associated price target remains the same with $420.00.
Tal Liani has given his Buy rating due to a combination of factors that highlight CrowdStrike Holdings’ potential for strong future performance. Following a meeting with the company’s CFO and Chief Accounting Officer, Liani noted the strategic and financial measures CrowdStrike has implemented to recover from the July outage. These measures include the Customer Commitment Package and the expansion of Falcon Flex deals, which are expected to bolster the company’s position. The management’s expectation of a rebound in net new annual recurring revenue (nnARR) in the latter half of the year, driven by growth in Cloud Security and Identity Security, further supports this positive outlook.
Additionally, CrowdStrike’s growth is anticipated to accelerate in the second half of the year as the company overcomes the impacts of the outage. The adoption of Falcon Flex by both new and existing customers is promising, with these deals often being larger in scale. The introduction of new platform pillars, such as CharlotteAI, alongside the robust performance of Cloud Security and Identity Security, is expected to contribute significantly to the company’s growth. The fact that 60% of Falcon Flex dollars have already been utilized ahead of schedule indicates a strong potential for growth upon renewal of these deals.
Liani covers the Technology sector, focusing on stocks such as Cisco Systems, CrowdStrike Holdings, and Ciena. According to TipRanks, Liani has an average return of 9.4% and a 56.53% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $429.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com