Crowdstrike (NASDAQ:CRWD) stock is falling on Monday after the cloud company’s shares were downgraded.
Morgan Stanley analyst Hamza Fodderwala is behind this news, dropping CRWD stock from an “overweight” rating to an “equal weight” rating. For the record, the analyst consensus rating for shares is a “moderate buy” based on 41 opinions.
To go along with that downgrade, the Morgan Stanley analysts also dropped their price target for CRWD stock from $178 per share to $167 per share. Even so, that still represents a potential upside of 11.6% for the shares. However, it is below the analyst consensus price prediction of $178.88 per share.
Why the Downgrade for CRWD Stock?
Here’s what Fodderwala said in a note to clients obtained by CNBC:
“We are cautious [on] CRWD ahead of FQ2 earnings this week as consensus estimates for 2H/CY24 rebound appear high in light of a more difficult demand environment […] Another cut to consensus CY23/24 annual recurring revenue estimates seems likely, while risk-reward seems more balanced now.”
Alongside this downgrade comes some 1.6 million shares of CRWD stock changing hands. To put that in perspective, the company’s daily average trading volume is closer to 3.7 million shares. Investors will also note that CRWD shares are down 2.3% on Monday morning. Despite that, the shares are still up 41.5% since the start of the year.
Investors looking for even more of the most recent stock market news are going to want to keep reading!
We’ve got all of the hottest stock market coverage that traders need to know about on Monday! A few examples of that include what’s going on with shares of XPeng (NYSE:XPEV), 3M (NYSE:MMM) and Myomo (NYSEMKT:MYO) stock this morning. You can catch up on all of these matters by checking out the links below!
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On the date of publication, William White 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.
