A Double-Shot of Good News Is Likely to Power CrowdStrike Stock to $300

CRWD stock - A Double-Shot of Good News Is Likely to Power CrowdStrike Stock to $300

Source: T. Schneider / Shutterstock.com

CrowdStrike (NASDAQ:CRWD) seeks to deliver software-as-a-service (SaaS) based, security endpoint solutions. Over the past year, the $300 resistance level has undoubtedly frustrated some CRWD stock investors. Yet resistance levels are meant to be broken and a pair of positive news items could provoke a sustained rally soon.

First of all, CrowdStrike just announced that it received an important authorization from the U.S. Department of Defense (DoD). Specifically, the company was granted a Provisional Authorization to Operate (P-ATO) at Impact Level 4 (IL-4).

With this, CrowdStrike will be better able to provide its cybersecurity technology to the public sector. In particular, the company can provide its Falcon cybersecurity platform to a “broad range” of DoD and Defense Industrial Base clients. With that, CrowdStrike can to help protect their controlled unclassified information (CUI).

Clearly, the DoD is placing a great deal of trust in CrowdStrike. The company is being tasked with lending critical “support to federal agencies in defending against modern cyber threats,” in the words of Shawn Henry, CrowdStrike chief security officer and president of CrowdStrike Services.

This is a win-win for both the DoD and for CrowdStrike. The DoD gets to upgrade its threat detection and prevention capabilities. Meanwhile, CrowdStrike is solidifying its business relationship with a significant federal client.

Hungry for more positive news? No problem! In a fresh news development, CrowdStrike’s management revealed their expectation that the company will surpass $5 billion in annual recurring revenue by fiscal-year 2026.

That’s quite a change compared to CrowdStrike’s prior guidance. Apparently, the company’s management had previously called for annual recurring revenue in the range of $3 billion by fiscal-year 2026. Now, CrowdStrike’s executives expect the company to achieve that milestone as early as 2024.

Understandably, Mizuho Securities analyst Gregg Moskowitz viewed CrowdStrike’s revised outlook as “highly encouraging.” He maintained a “buy” rating on CRWD stock while issuing a price target of $270.

But hey, why stop at $270? With multiple reasons to stay in the trade, CrowdStrike’s loyal shareholders should prepare to do battle at the $300 line. This time around, they might finally prevail.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/a-double-shot-of-good-news-is-likely-to-power-crwd-stock-to-300/.

©2022 InvestorPlace Media, LLC