Cybersecurity Spending Surge Benefits Multiple Firms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
0mins
Should l Buy CRWD?
Source: seekingalpha
- Rising Market Demand: KeyBanc Capital Markets indicates that cybersecurity spending is expected to increase following the release of Mythos, driving demand for companies like Palo Alto Networks and CrowdStrike, reflecting strong market interest in security solutions.
- CrowdStrike Price Target Increase: KeyBanc raised CrowdStrike's price target from $525 to $700 while maintaining its Overweight rating, as analysts believe that Mythos and the Frontier AI Readiness service will drive growth for the company in the upcoming quarter.
- Okta's Growth Outlook: Despite concerns over layoffs at Okta, its leadership in the AI agent space and successful collaboration with Auth0 prompted an increase in its price target from $95 to $103, reflecting optimistic market sentiment regarding its future performance.
- Zscaler Price Target Boost: Zscaler's price target was raised from $160 to $190, with KeyBanc believing the company will benefit from increased market focus due to Mythos, particularly in network security and data loss prevention, which is expected to enhance its financial performance.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to fall
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 594.080
Low
353.00
Averages
559.71
High
640.00
Current: 594.080
Low
353.00
Averages
559.71
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.
Cybersecurity Spending Surge Benefits Multiple Firms
- Rising Market Demand: KeyBanc Capital Markets indicates that cybersecurity spending is expected to increase following the release of Mythos, driving demand for companies like Palo Alto Networks and CrowdStrike, reflecting strong market interest in security solutions.
- CrowdStrike Price Target Increase: KeyBanc raised CrowdStrike's price target from $525 to $700 while maintaining its Overweight rating, as analysts believe that Mythos and the Frontier AI Readiness service will drive growth for the company in the upcoming quarter.
- Okta's Growth Outlook: Despite concerns over layoffs at Okta, its leadership in the AI agent space and successful collaboration with Auth0 prompted an increase in its price target from $95 to $103, reflecting optimistic market sentiment regarding its future performance.
- Zscaler Price Target Boost: Zscaler's price target was raised from $160 to $190, with KeyBanc believing the company will benefit from increased market focus due to Mythos, particularly in network security and data loss prevention, which is expected to enhance its financial performance.
See More
Jim Cramer's Trust Sells Shares of ARM and CrowdStrike
- ARM Position Adjustment: Jim Cramer's Charitable Trust is selling 40 shares of Arm Holdings at approximately $211 each, reducing its portfolio weight from 1.22% to 1%, aiming to lock in a 90% gain since April while maintaining confidence in long-term data center CPU demand.
- CrowdStrike Profit-Taking: The Trust is also selling 20 shares of CrowdStrike at around $594, decreasing its weight from 4.08% to 3.8%, realizing about a 98% gain since November 2022, reflecting a market reassessment of AI-driven cybersecurity needs.
- Market Dynamics Shift: CrowdStrike's stock rebounded after a 25% drop in February due to concerns over AI models, particularly following Palo Alto Networks' report predicting that AI-driven attacks will become the norm within the next 3 to 5 months, restoring market confidence.
- Investment Strategy Adjustment: This trimming reflects Jim Cramer's keen insight into market dynamics, as he balances optimism for ARM and CrowdStrike's long-term prospects with prudent profit-taking to mitigate portfolio risk after significant price increases.
See More
Market Dynamics and Investment Strategy Analysis
- Weak Economic Data from China: April retail sales in China hit a 40-month low, with industrial output and investment growth also missing expectations, potentially prompting the government to consider aggressive stimulus measures to counteract economic slowdown pressures.
- Salesforce Rating Downgrade: Bank of America downgraded Salesforce from hold to sell with a price target of $160, expressing concerns over customer growth and monetization pathways, indicating a need for an AI-driven structural reset to tackle market challenges.
- NextEra Energy Acquisition: NextEra Energy's acquisition of Dominion Energy aims to create the world's largest regulated electric utility, strategically positioning itself to meet the insatiable electricity demand driven by AI advancements in the future energy market.
- CrowdStrike Price Target Increase: KeyBanc raised CrowdStrike's price target from $525 to $700, highlighting that increasing cybersecurity vulnerabilities are driving companies to boost their spending on security measures, thereby enhancing CrowdStrike's market outlook.
See More
Hancock Prospecting Expands Portfolio into Defense and Gold
- Portfolio Diversification: Hancock Prospecting has diversified its holdings in 2023 by adding defense, gold, and rare-earth assets, bringing its total portfolio value to $3.3 billion, indicating a strategic focus on emerging markets.
- Significant Shift in Investments: In a March portfolio adjustment, Hancock invested $133 million in defense firms including CrowdStrike, L3Harris, Lockheed Martin, Northrop Grumman, and RTX, reflecting strong confidence in the defense sector.
- Increased Gold Producer Holdings: Hancock has also increased its stake in major gold producer Newmont, further solidifying its investment in precious metals, which is expected to benefit from potential rises in gold prices.
- Rare Earth Investment Boost: In the current quarter, Hancock raised its stake in Rare Earths Americas to 6.3% while increasing its position in Hudbay Minerals by approximately 10%, demonstrating a strategic emphasis on the rare earth and copper markets.
See More
Stocks Pull Back but S&P 500 on Track for Seventh Straight Positive Week
- Rising Bond Yields: The massive bond selloff pushed the 10-year Treasury yield to approximately 4.6% and the 30-year yield above 5.1%, which could lead to increased borrowing costs, thereby affecting corporate investment decisions and consumer spending.
- Oil Price Surge: West Texas Intermediate crude oil prices climbed back above $105 per barrel, and this rise in oil prices may exacerbate inflation concerns, potentially impacting consumer confidence and spending, especially in a high-inflation environment.
- Volatility in AI Stocks: Stocks like Arm Holdings and Nvidia experienced profit-taking as enthusiasm for AI waned, indicating a cautious investor sentiment towards high-risk assets amid rising interest rates and oil prices.
- Upcoming Earnings Reports: A significant week of earnings is ahead with key companies like Home Depot and Nvidia scheduled to report, and the market will closely monitor these results for their potential impact on stock prices in the context of increasing economic uncertainty.
See More
CrowdStrike Shares Rise for Seven Consecutive Days
- Strong Stock Performance: CrowdStrike (CRWD) shares rose 2.9% on Friday, closing at $596.57, marking seven consecutive days of gains, indicating robust market demand and investor confidence.
- Significant Year-to-Date Increase: So far this year, CRWD's stock has surged 23%, with a remarkable 42% increase over the past month, reflecting the company's sustained growth potential and market recognition in the cybersecurity sector.
- Optimistic Analyst Ratings: 41 Wall Street analysts have rated CRWD as Buy or higher, demonstrating confidence in its future performance, although 11 analysts have issued Hold ratings, indicating a cautious stance on its valuation.
- Technical Indicator Warnings: Despite the optimistic market sentiment, analysts caution that CRWD may face technical pullback risks, particularly following the upcoming FQ1'27 earnings call, which could lead to volatility, urging investors to remain vigilant.
See More
Cybersecurity Spending Surge Benefits Multiple Firms
- Rising Market Demand: KeyBanc Capital Markets indicates that cybersecurity spending is expected to increase following the release of Mythos, driving demand for companies like Palo Alto Networks and CrowdStrike, reflecting strong market interest in security solutions.
- CrowdStrike Price Target Increase: KeyBanc raised CrowdStrike's price target from $525 to $700 while maintaining its Overweight rating, as analysts believe that Mythos and the Frontier AI Readiness service will drive growth for the company in the upcoming quarter.
- Okta's Growth Outlook: Despite concerns over layoffs at Okta, its leadership in the AI agent space and successful collaboration with Auth0 prompted an increase in its price target from $95 to $103, reflecting optimistic market sentiment regarding its future performance.
- Zscaler Price Target Boost: Zscaler's price target was raised from $160 to $190, with KeyBanc believing the company will benefit from increased market focus due to Mythos, particularly in network security and data loss prevention, which is expected to enhance its financial performance.
See More
Jim Cramer's Trust Sells Shares of ARM and CrowdStrike
- ARM Position Adjustment: Jim Cramer's Charitable Trust is selling 40 shares of Arm Holdings at approximately $211 each, reducing its portfolio weight from 1.22% to 1%, aiming to lock in a 90% gain since April while maintaining confidence in long-term data center CPU demand.
- CrowdStrike Profit-Taking: The Trust is also selling 20 shares of CrowdStrike at around $594, decreasing its weight from 4.08% to 3.8%, realizing about a 98% gain since November 2022, reflecting a market reassessment of AI-driven cybersecurity needs.
- Market Dynamics Shift: CrowdStrike's stock rebounded after a 25% drop in February due to concerns over AI models, particularly following Palo Alto Networks' report predicting that AI-driven attacks will become the norm within the next 3 to 5 months, restoring market confidence.
- Investment Strategy Adjustment: This trimming reflects Jim Cramer's keen insight into market dynamics, as he balances optimism for ARM and CrowdStrike's long-term prospects with prudent profit-taking to mitigate portfolio risk after significant price increases.
See More
Market Dynamics and Investment Strategy Analysis
- Weak Economic Data from China: April retail sales in China hit a 40-month low, with industrial output and investment growth also missing expectations, potentially prompting the government to consider aggressive stimulus measures to counteract economic slowdown pressures.
- Salesforce Rating Downgrade: Bank of America downgraded Salesforce from hold to sell with a price target of $160, expressing concerns over customer growth and monetization pathways, indicating a need for an AI-driven structural reset to tackle market challenges.
- NextEra Energy Acquisition: NextEra Energy's acquisition of Dominion Energy aims to create the world's largest regulated electric utility, strategically positioning itself to meet the insatiable electricity demand driven by AI advancements in the future energy market.
- CrowdStrike Price Target Increase: KeyBanc raised CrowdStrike's price target from $525 to $700, highlighting that increasing cybersecurity vulnerabilities are driving companies to boost their spending on security measures, thereby enhancing CrowdStrike's market outlook.
See More
Hancock Prospecting Expands Portfolio into Defense and Gold
- Portfolio Diversification: Hancock Prospecting has diversified its holdings in 2023 by adding defense, gold, and rare-earth assets, bringing its total portfolio value to $3.3 billion, indicating a strategic focus on emerging markets.
- Significant Shift in Investments: In a March portfolio adjustment, Hancock invested $133 million in defense firms including CrowdStrike, L3Harris, Lockheed Martin, Northrop Grumman, and RTX, reflecting strong confidence in the defense sector.
- Increased Gold Producer Holdings: Hancock has also increased its stake in major gold producer Newmont, further solidifying its investment in precious metals, which is expected to benefit from potential rises in gold prices.
- Rare Earth Investment Boost: In the current quarter, Hancock raised its stake in Rare Earths Americas to 6.3% while increasing its position in Hudbay Minerals by approximately 10%, demonstrating a strategic emphasis on the rare earth and copper markets.
See More
Stocks Pull Back but S&P 500 on Track for Seventh Straight Positive Week
- Rising Bond Yields: The massive bond selloff pushed the 10-year Treasury yield to approximately 4.6% and the 30-year yield above 5.1%, which could lead to increased borrowing costs, thereby affecting corporate investment decisions and consumer spending.
- Oil Price Surge: West Texas Intermediate crude oil prices climbed back above $105 per barrel, and this rise in oil prices may exacerbate inflation concerns, potentially impacting consumer confidence and spending, especially in a high-inflation environment.
- Volatility in AI Stocks: Stocks like Arm Holdings and Nvidia experienced profit-taking as enthusiasm for AI waned, indicating a cautious investor sentiment towards high-risk assets amid rising interest rates and oil prices.
- Upcoming Earnings Reports: A significant week of earnings is ahead with key companies like Home Depot and Nvidia scheduled to report, and the market will closely monitor these results for their potential impact on stock prices in the context of increasing economic uncertainty.
See More
CrowdStrike Shares Rise for Seven Consecutive Days
- Strong Stock Performance: CrowdStrike (CRWD) shares rose 2.9% on Friday, closing at $596.57, marking seven consecutive days of gains, indicating robust market demand and investor confidence.
- Significant Year-to-Date Increase: So far this year, CRWD's stock has surged 23%, with a remarkable 42% increase over the past month, reflecting the company's sustained growth potential and market recognition in the cybersecurity sector.
- Optimistic Analyst Ratings: 41 Wall Street analysts have rated CRWD as Buy or higher, demonstrating confidence in its future performance, although 11 analysts have issued Hold ratings, indicating a cautious stance on its valuation.
- Technical Indicator Warnings: Despite the optimistic market sentiment, analysts caution that CRWD may face technical pullback risks, particularly following the upcoming FQ1'27 earnings call, which could lead to volatility, urging investors to remain vigilant.
See More
