MKM Partners sees an advantage at $240
CrowdStrike Holdings Inc (NASDAQ:CRWD) is down nearly 30% from its year-to-date peak, but an MKM Partners analyst is confident the stock will fully recover in the next twelve months .
CrowdStrike’s stock could jump 40% from here
On Friday, Catherine Trebnick assumed coverage of “one of the most comprehensive cloud-native platforms” with a buy rating and announced a price target of $240 per share. In a note to clients, she said:
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The cloud-native architecture allowed CrowdStrike to expand its capabilities beyond Endpoint Security with 22 modules that address a $71 billion market opportunity in FY24. We believe the company is in a separate category.
Last month, CrowdStrike released its fiscal second quarter results that far exceeded estimates for the high and low. It now projects $5.0 billion in annual recurring revenue by fiscal year 2026, up from $3.0 billion last year.
Joe Terranova is also bullish on CrowdStrike
CrowdStrike has maintained revenue growth above 55% for ten consecutive quarters. Also on Friday, Joe Terranova (Virtus Investment Partners) also said it was his favorite “cybersecurity” stock to hold.
Cybersecurity can work for you. You’ve seen it with CrowdStrike. Market struggles are a headwind, but I’ll hold CrowdStrike through this because I believe the other side is coming out on top.
The MKM analyst is bullish on the cybersecurity industry as a whole, given that it has also launched four other names (Fortinet, Zscaler, CyberArk and Palo Alto Networks) with buy ratings.
The Global X Cybersecurity ETF is down almost 20% for the year at the time of writing.
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