Shares of Crowdstrike Holdings (NASDAQ:CRWD), 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.
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.
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.