Cloud-based security company CrowdStrike (NASDAQ:CRWD) enjoyed a pleasant day in the market amidst a recent spike in demand. After receiving a glowing stock recommendation from Goldman Sachs, it seems the company’s prospects are quickly rising. CRWD stock closed up more than 3%.
So, what do you need to know about CrowdStrike today?
Well, today Goldman Sachs analyst Brian Essex offered a number of reasons to be bullish on CRWD. According to Essex, the company is poised to benefit from increasing interest in cybersecurity as a consequence of Russia’s invasion of Ukraine.
“The global threat environment remains elevated and initial channel conversations indicate that the Russia/Ukraine war is driving even greater levels of demand. We continue to view [CrowdStrike] as well positioned in the sweet spot of demand ahead of accelerating deterioration of the threat environment.”
Essex upgraded CRWD from “hold” to “buy” while raising his price target to $285 from $270. This implies roughly 28% upside from today’s closing price of $223.51.
What else do you need to know about CrowdStrike lately?
CRWD Stock Climbs Amidst ‘Unprecedented Demand’
CrowdStrike has endured several months of turmoil thanks to a tech stock selloff. Since its November highs above $295, CRWD is currently trending around 30% lower.
According to Essex, however, a number of factors appear to have turned in CrowdStrike’s favor. The conflict in Ukraine has put a spotlight on cybersecurity for corporation across the world. As such, a tech-forward security company like CrowdStrike could see a stroke of “unprecedented demand” as Essex stated. Given its recent price dip, the stock is all the more appealing.
Today’s news comes in addition to yesterday’s announcement from CrowdStrike that it has received the Provisional Authorization to Operate (P-ATO) at Impact Level 4 from the U.S. Department of Defense. The P-ATO allows CrowdStrike to leverage its cybersecurity platform for a broad range of the government’s defense customers.
CrowdStrike clearly has a number of things going for it heading further into the year. Time will tell if its share price will soon reflect the promising developments.
On the date of publication, Shrey Dua did not hold (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.