Morgan Stanley Upgrades CrowdStrike, Sees 17% Upside
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy CRWD?
Source: CNBC
- Rating Upgrade: Morgan Stanley upgraded CrowdStrike from equal weight to overweight, naming it a top pick, which reflects strong confidence in its future performance.
- Price Target Increase: Analyst Meta Marshall raised the price target from $487 to $510, indicating a 17% upside, showcasing optimism about the company's growth potential.
- Market Leadership: Despite its high valuation, Marshall believes CrowdStrike is best positioned for outperformance in an AI-driven market, expecting it to continue gaining market share and benefiting from AI tailwinds.
- Strong Demand Trends: CrowdStrike's Falcon Flex subscription model saw a 120% year-over-year growth in FQ4, with Marshall noting that strong demand trends and the company's best-in-class management team make it a standout in the cybersecurity industry.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 434.130
Low
353.00
Averages
559.71
High
640.00
Current: 434.130
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.
CrowdStrike's Annual Recurring Revenue Growth Accelerates
- Significant Revenue Growth: CrowdStrike's net new annual recurring revenue (ARR) surged 47% to $331 million in fiscal Q4, with total ARR increasing 24% to $5.25 billion, reflecting the company's strong performance in the cybersecurity sector.
- Steady Subscription Revenue Rise: The company's total revenue grew 23% year-over-year to $1.31 billion, with subscription revenue also climbing 23% to $1.24 billion, indicating the ongoing appeal of its high-margin subscription model.
- Customer Base Expansion: In the quarter, CrowdStrike added 350 new Falcon Flex customers, with an average ARR exceeding $1 million, and a 26% ARR lift for Re-Flex customers, demonstrating that its flexible licensing model is driving customer growth and revenue enhancement.
- Optimistic Future Outlook: CrowdStrike projects fiscal 2027 revenue between $5.868 billion and $5.928 billion, reflecting a growth of 22% to 23%, with ARR expected to grow 23% to 24%, reaching between $6.466 billion and $6.516 billion, showcasing the company's confidence in future growth.
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Morgan Stanley Recommends Buying CrowdStrike Stock Despite Potential End to Winning Streak.
- Company Performance: CrowdStrike Holdings is experiencing significant success this month, indicating strong performance in the market.
- Analyst Insights: Analysts from Morgan Stanley suggest that this positive trend is likely to continue, rather than being a temporary spike.
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Morgan Stanley Upgrades CrowdStrike, Sees Strong AI-Driven Growth Potential
- Rating Upgrade: Morgan Stanley upgraded CrowdStrike from Equal-weight to Overweight and raised its price target from $487 to $510, reflecting increased confidence in its future performance, particularly as AI drives enterprise security spending.
- Revenue Growth Potential: Analysts project that CrowdStrike could achieve over 20% revenue growth in the coming years, supported by its strong positioning in Endpoint Detection and Response and the Falcon platform's capabilities across cloud, identity, AI, and next-generation SIEM.
- Market Share Gains: The Falcon Flex product has emerged as a key driver for platform consolidation in just a few quarters, enabling CrowdStrike to secure larger and longer deals with customers, thereby further solidifying its market position.
- Clear Competitive Advantage: Morgan Stanley noted that CrowdStrike remains one of the few security platform vendors with robust Falcon Operational Support and defensibility across multiple security categories, positioning it to capture greater market share in the evolving next-generation SIEM and security operations landscape.
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- Cybersecurity Stock Bounce: Morgan Stanley upgraded CrowdStrike from hold to buy, with its stock up over 20% from last month's low, highlighting the positive impact of AI technology on the cybersecurity sector and indicating optimistic market expectations for future growth.
- Hewlett Packard Enterprise's Positive Outlook: Despite memory cost pressures, the company raised its full-year earnings outlook, with reported quarterly revenues slightly below expectations but gross margins and adjusted EPS exceeding forecasts, demonstrating strong demand in the data center buildout.
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Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Upgrades and Downgrades: The rating changes include upgrades and downgrades for certain stocks, prompting investors to pay attention to these shifts to assess potential investment opportunities and risks.
- Market Reaction Expectations: Analysts' rating adjustments may lead to short-term volatility in the affected stocks, necessitating investors to closely monitor market dynamics to seize investment opportunities.
- Information Source: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing crucial insights for investor decision-making.
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CrowdStrike's Annual Recurring Revenue Growth Accelerates
- Significant Revenue Growth: CrowdStrike's net new annual recurring revenue (ARR) surged 47% to $331 million in fiscal Q4, with total ARR increasing 24% to $5.25 billion, reflecting the company's strong performance in the cybersecurity sector.
- Steady Subscription Revenue Rise: The company's total revenue grew 23% year-over-year to $1.31 billion, with subscription revenue also climbing 23% to $1.24 billion, indicating the ongoing appeal of its high-margin subscription model.
- Customer Base Expansion: In the quarter, CrowdStrike added 350 new Falcon Flex customers, with an average ARR exceeding $1 million, and a 26% ARR lift for Re-Flex customers, demonstrating that its flexible licensing model is driving customer growth and revenue enhancement.
- Optimistic Future Outlook: CrowdStrike projects fiscal 2027 revenue between $5.868 billion and $5.928 billion, reflecting a growth of 22% to 23%, with ARR expected to grow 23% to 24%, reaching between $6.466 billion and $6.516 billion, showcasing the company's confidence in future growth.
See More
Morgan Stanley Recommends Buying CrowdStrike Stock Despite Potential End to Winning Streak.
- Company Performance: CrowdStrike Holdings is experiencing significant success this month, indicating strong performance in the market.
- Analyst Insights: Analysts from Morgan Stanley suggest that this positive trend is likely to continue, rather than being a temporary spike.
See More
Morgan Stanley Upgrades CrowdStrike, Sees Strong AI-Driven Growth Potential
- Rating Upgrade: Morgan Stanley upgraded CrowdStrike from Equal-weight to Overweight and raised its price target from $487 to $510, reflecting increased confidence in its future performance, particularly as AI drives enterprise security spending.
- Revenue Growth Potential: Analysts project that CrowdStrike could achieve over 20% revenue growth in the coming years, supported by its strong positioning in Endpoint Detection and Response and the Falcon platform's capabilities across cloud, identity, AI, and next-generation SIEM.
- Market Share Gains: The Falcon Flex product has emerged as a key driver for platform consolidation in just a few quarters, enabling CrowdStrike to secure larger and longer deals with customers, thereby further solidifying its market position.
- Clear Competitive Advantage: Morgan Stanley noted that CrowdStrike remains one of the few security platform vendors with robust Falcon Operational Support and defensibility across multiple security categories, positioning it to capture greater market share in the evolving next-generation SIEM and security operations landscape.
See More
Market Update: Oil Price Drop and Tech Stock Upgrades
- Oil Price Fluctuations: U.S. benchmark WTI crude prices have fallen below $90 a barrel, despite being up over 50% year-to-date, indicating market optimism regarding improved U.S.-Iran relations, yet geopolitical risks continue to loom over oil prices.
- Tech Stock Rating Changes: Intuit was upgraded to buy from hold by Rothschild & Co Redburn, with its stock rising over 30% since late February, although it remains down 28.5% for the year, reflecting a recovery in market confidence in its software products.
- Cybersecurity Stock Bounce: Morgan Stanley upgraded CrowdStrike from hold to buy, with its stock up over 20% from last month's low, highlighting the positive impact of AI technology on the cybersecurity sector and indicating optimistic market expectations for future growth.
- Hewlett Packard Enterprise's Positive Outlook: Despite memory cost pressures, the company raised its full-year earnings outlook, with reported quarterly revenues slightly below expectations but gross margins and adjusted EPS exceeding forecasts, demonstrating strong demand in the data center buildout.
See More
Latest Wall Street Rating Updates
- BofA Downgrades Qualcomm: Bank of America has downgraded Qualcomm from neutral to underperform with a price target of $145, citing lukewarm projected sales and EPS growth of only 2% and 1% CAGR from 2025 to 2028, significantly lagging the semiconductor sector's expected 17% growth.
- Deutsche Bank Upgrades Teladoc: Deutsche Bank upgraded Teladoc from hold to buy, highlighting an attractive risk/reward profile due to compelling valuation and a deliverable strategy for its BetterHelp business, indicating a strong potential for future growth.
- TD Cowen Upgrades Rivian: TD Cowen upgraded Rivian from hold to buy, projecting full-scale demand for its R2 model to reach between 212,000 and 335,000 units, suggesting significant upside potential against 2027 consensus estimates.
- Morgan Stanley Reiterates Microsoft Overweight: Morgan Stanley reiterated its overweight rating on Microsoft, emphasizing the readiness of its Office product suite for the upcoming Agentic AI offerings, with general availability expected on May 1, 2026, priced at $99 per user per month.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Upgrades and Downgrades: The rating changes include upgrades and downgrades for certain stocks, prompting investors to pay attention to these shifts to assess potential investment opportunities and risks.
- Market Reaction Expectations: Analysts' rating adjustments may lead to short-term volatility in the affected stocks, necessitating investors to closely monitor market dynamics to seize investment opportunities.
- Information Source: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing crucial insights for investor decision-making.
See More
