Please ensure Javascript is enabled for purposes of website accessibility

Why CrowdStrike Holdings Stock Was Gaining Today

By Jeremy Bowman – Updated Oct 5, 2020 at 12:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Goldman upgrade helped lift shares of the cybersecurity company.

What happened

Shares of Crowdstrike Holdings (CRWD 3.40%), the high-flying cybersecurity provider, were climbing today after the software-as-a-service play got an upgrade to buy from Goldman Sachs as a new analyst took over coverage of the stock.

As of 11:05 a.m. EDT on Monday, the stock was up 4% after gaining as much as 6% earlier in the session.

A digital image of a lock over some computer code.

Image source: Getty Images.

So what

Goldman analyst Brian Essex lifted the investment bank's rating from neutral to buy and hiked the price target from $122 all the way to $176. Essex said the company had established itself as a leader in the endpoint security market, and its "disruptive platform" has helped it penetrate key markets. The analyst added that he sees room for upside and noted that CrowdStrike is growing at double the speed of some of its high-growth peers.

His new price target implies a 21% upside to the stock.

Now what

There's no question that CrowdStrike has been one of the biggest winners on the market this year. The stock has nearly tripled year to date, riding a wave of pandemic-driven growth as cybersecurity has only taken on greater importance at a time when secure connectivity is crucial for nearly all businesses and organizations. 

The company showed off 84% revenue growth in its most recent earnings report, and posted a small adjusted profit, showing investors that it's both growing like wildfire and is capable of turning a profit.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
CRWD
$175.07 (3.40%) $5.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.