Shares of CrowdStrike (CRWD +0.66%) have surged this week, jumping as much as 16.3%, according to data supplied by S&P Global Market Intelligence. When the market closed on Thursday, the shares were still up 15%.
The broader market has edged higher over the past week, which may have provided some momentum. Yet the cloud-based cybersecurity specialist was on the receiving end of an analyst upgrade and a veritable stampede of price target increases as Wall Street is increasingly bullish about CrowdStrike's prospects.
NASDAQ: CRWD
Key Data Points
Lots of growth drivers, according to Wall Street
JPMorgan kicked off the week by adding CrowdStrike to its Analyst Focus list of growth ideas while maintaining an overweight (buy) rating on the shares. It also raised the firm's price target to $300 from $269, suggesting potential upside of 21% compared to Friday's close. The analysts cited the company's growth and fundamentals, saying it's "one of the best-positioned" to benefit from the increasing need for cybersecurity solutions.
Analysts at Morgan Stanley upgraded CrowdStrike to overweight (buy) from equalweight (hold) while raising its price target to $304, up from $203, or potential gains for investors of 23%. The analysts cited "accelerating cyberattacks, multiple new products, and generative artificial intelligence tailwinds" as tailwinds to drive the stock higher.
Among the most bullish were analysts at Citi, who maintained a buy rating on the shares while boosting the price target to $320, representing 29% upside and among the highest on Wall Street. One analyst cited the broader landscape for his bullish take and has previously cited CrowdStrike's "disciplined execution" and success at siphoning business from its rivals.
There were several more, but you get the drift.
Strong track record
The available evidence suggests these analysts are on to something. In its 2024 fiscal third quarter (ended Oct. 31), CrowdStrike delivered revenue of $786 million, up 35% year over year. The company also swung to a profit over the past year, with earnings per share of $0.11, compared to a loss per share of $0.24 in the prior-year quarter.
CrowdStrike isn't exactly cheap at 17 times next year's sales, but the stock has soared nearly 400% since its debut in mid-2019, which illustrates why it's worthy of a premium valuation. CrowdStrike looks like a solid buy.
