Conflict Is Bad for the World, But Good for CrowdStrike Holdings

CRWD stock - Conflict Is Bad for the World, But Good for CrowdStrike Holdings

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A more dangerous world is another reason for investors to like CrowdStrike Holdings (NASDAQ:CRWD) stock, according to a new analyst report. Jefferies (NYSE:JEF) analyst Joseph Gallo assumed the company’s coverage of CrowdStrike and set a price target of $275 with a “buy” rating. Jefferies analyst Brent Thill previously covered CRWD stock and also gave it a “buy” rating. Gallo wrote that cybersecurity is as important as ever today and he prefers CrowdStrike among “best of breed category winners” that he covers.

Gallo called cybersecurity “a quilt of different vendors patched together as no one vendor can defend the entire enterprise.” And CrowdStrike stock, he says, should be the biggest beneficiary from what he calls and increased attack environment with a shortage of security personnel. Based in California, CrowdStrike is a cybersecurity company that provides cloud-based endpoint security solutions. It protects business and enterprise companies from data theft and cyberattacks.

The company has been in major growth mode since the Covid-19 pandemic made cloud-based cybersecurity all the more important due to at-home work. And then there is the situation with Russia. Tensions with Russia are the highest they have been in years as Russian President Vladimir Putin presses his war with neighboring Ukraine. Russia is known to hack into opposing nations’ networks and is none too pleased with the U.S. as Washington continues to send aid to Ukraine.

Goldman Sachs (NYSE:GS) analyst Brian Essex recently upgraded his rating on CRWD stock, raising his price target to $285 and cited the Russia-Ukraine conflict in his reasoning. “The global threat environment remains elevated and initial channel conversations indicate that the Russia/Ukraine war is driving even greater levels of demand,” he wrote.

The consensus price target via Tipranks for CRWD stock is $276. This is based on 20 Wall Street analysts. It is a little over a 20% upside from the stock’s current price.

In the fourth quarter, CRWD stock posted revenue of $431 million, which was 63% higher than a year ago. Annual recurring revenue was $1.73 billion, which is an increase of 65%. The company is projecting 2023 revenue between $2.133 billion and $2.163 billion, an adjusted earnings of $1.03 per share to $1.13 per share.

On the date of publication, Patrick Sanders 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.

Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.


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