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shares of cloud strike (CRWD 0.88%) It soared this week, gaining as much as 16.3%, according to data provided by S&P Global Market Intelligence. As of Thursday’s market close, the stock was still up 15%.
The overall market has been creeping up a bit over the past week, which may have provided some momentum. But as Wall Street became increasingly bullish on CrowdStrike’s prospects, the cloud-based cybersecurity expert was hit with a wave of analyst upgrades and indeed price target hikes.
According to Wall Street, there are many drivers of growth.
JP Morgan We started the week by adding CrowdStrike to our Analyst Focus List of Growth Ideas while maintaining an Overweight (Buy) rating on the stock. The company’s price target was also raised from $269 to $300, suggesting a potential upside of 21% from Friday’s closing price. Analysts cited the company’s growth and fundamentals and said it is “one of the best-positioned companies” to benefit from the growing need for cybersecurity solutions.
analyst of morgan stanley CrowdStrike upgraded the stock from equal weight (hold) to overweight (buy) and raised its price target from $203 to $304, or a potential return of 23% for investors. Analysts cited “acceleration of cyber-attacks, multiple new products, and tailwinds from generative artificial intelligence” as tailwinds for the stock’s rise.
The following analysts were the most bullish: citymaintained a buy rating on the stock, but raised its price target to $320, representing a 29% upside, the highest on Wall Street. One analyst cited broader conditions for his bullish view, and previously cited CrowdStrike’s “disciplined execution” and success in siphoning business from rivals.
There were a few others, but you can see the trend.
strong track record
The available evidence suggests that these analysts are onto something. In the third quarter of fiscal 2024 (ending October 31), CrowdStrike generated $786 million in revenue, an increase of 35% year-over-year. The company also posted a positive earnings per share of $0.11 over the past year (compared to a loss of $0.24 in the same period last year).
CrowdStrike’s stock isn’t exactly cheap at 17 times next year’s sales, but the stock has soared nearly 400% since its debut in mid-2019, showing why it deserves a premium valuation. Crowdstrike looks like it will be a solid buy.
JPMorgan Chase is an advertising partner of The Motley Fool’s Ascent. Citigroup is an advertising partner of The Motley Fool’s Ascent. Danny Vena has a position on his CrowdStrike. The Motley Fool recommends CrowdStrike and he has a position in JPMorgan Chase. The Motley Fool has a disclosure policy.
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