CrowdStrike Acquires SGNL for $740 Million to Strengthen Identity Security Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- Acquisition Strategy: CrowdStrike's acquisition of SGNL for $740 million, primarily funded through cash, aims to enhance its position in the identity security market, which is expected to positively impact future revenue growth.
- Market Competition: This acquisition is seen as a direct challenge to identity security companies like Okta, as CrowdStrike seeks to leverage SGNL's technology to enhance the competitiveness of its Falcon platform, thereby capturing a larger share of the rapidly growing cybersecurity market.
- Financial Performance: CrowdStrike has achieved an average annual revenue growth of 43% over the past five years, and this acquisition is expected to further drive revenue growth, solidifying its leadership in the cybersecurity sector.
- Industry Outlook: With the rise of AI threats and non-human identities, the demand for identity security will continue to grow, and CrowdStrike's acquisition positions it to seize more market opportunities in this critical area, aligning with future trends in cybersecurity.
Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWD is 562.25 USD with a low forecast of 353.00 USD and a high forecast of 640.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 445.880
Low
353.00
Averages
562.25
High
640.00
Current: 445.880
Low
353.00
Averages
562.25
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. Its Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources. It offers 29 cloud modules on its Falcon platform via a software as a service (SaaS) subscription-based model that spans multiple large markets, including corporate endpoint and cloud workload security, managed security services, security and vulnerability management, information technology (IT) operations management, identity protection, next-generation security information and event management (SIEM) and log management, threat intelligence services, data protection, SaaS security posture management, automation and response (SOAR) and artificial intelligence powered workflow automation, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
