Crowdstrike Holdings (NASDAQ:CRWD) is rising steadily today on an upgrade from Morgan Stanley. It’s been an outstanding year for the cybersecurity firm, which has seen shares surge by more than 180%, even during the 2023 bear market. And while many companies in the space have enjoyed at least fairly significant growth, Crowdstrike has outperformed many of its peers, including Palo Alto Networks (NASDAQ:PANW) and SentinelOne (NYSE:S). Now, CRWD stock is poised to keep rising as overall market conditions continue to shift in a positive direction. And despite its impressive performance, many Wall Street analysts think it has plenty of room to run.
Does this mean that CRWD stock is a name to bet on as investors gear up for a new year? Let’s take a closer look at what experts are saying. Many remain highly bullish on Crowdstrike and maintain high price targets.
What’s Happening With CRWD Stock
Crowdstike began the day by rising, and it hasn’t stopped. As of this writing, CRWD stock is up 5% for the day, and its current trajectory suggests it isn’t done climbing. While shares dipped during the first week of 2024, they have since rebounded nicely. The company didn’t need another Wall Street upgrade to gain momentum, but it certainly isn’t hurting.
What does Morgan Stanley have to say about Crowdstrike? Analyst Hamza Fodderwala recently upgraded CRWD stock from an “equal weight” to an “overweight” overweight rating, issuing a price target of $304. This implies an upside potential of almost 11%. It comes just one day after D.A. Davidson analyst Rudy Kessinger issued a “buy” rating and a $285 price target. CRWD stock currently maintains a “strong buy consensus” on TipRanks, with 35 out of 36 analysts rating it as a buy and zero calling it a “sell.”
This warrants a closer look as to why Wall Street loves CRWD stock so much. InvestorPlace contributor Yiannis Zourmpanos recently offered some insight into the company’s strengths. Explaining the importance of Crowdstrike’s impressive Annual Recurring Revenue (ARR), he reported:
“The record-breaking net new ARR of $223 million highlights the company’s ability to retain and acquire new customers. Moreover, this increase in ARR indicates accelerating business expansion and growth. Furthermore, deals involving eight or more modules increased by 78% year-over-year. This indicates growing trust and customer reliance on CrowdStrike’s consolidated platform. Also, it underscores the company’s ability to address multiple cybersecurity needs.”
Those are just a few of the reasons that Zourmpanos believes CRWD stock can surge 300% by 2026. Fellow contributor Marc Guberti is similarly bullish, noting Crowdstrike’s potential to ride the cloud computing boom to new heights.
What Comes Next
Wall Street analysts don’t always see eye to eye, but they seem convinced that CRWD stock is a likely winner of the 2024 market and beyond. With strong financials and a proven history of attracting new customers, the company is in an excellent position to keep rising as more and more tech firms scale operations and require cybersecurity assistance. We are in the “golden age of data”, but as Guberti highlights, data is vulnerable. Companies understand the importance of investing in proper cybersecurity measures, which often means signing deals with companies like Crowdstrike.
On the date of publication, Samuel O’Brient 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.
