CrowdStrike Holdings Stock Surges as Morgan Stanley Analyst Raises Price Target
Morgan Stanley analyst Hamza Fodderwala has upgraded shares of CrowdStrike Holdings, citing increasing cyberattacks and the company's innovative technology designed to combat them. Fodderwala raised his price target for the stock by 50%, from $203 to $304, implying a 16% increase from its previous closing price of $261.28.
The demand for CrowdStrike's products and services remains high as cyberattacks continue to pose a significant threat. Last year, renowned companies such as Clorox, Alphabet's Google, MGM Resorts International, and Caesars Entertainment all fell victim to attacks.
Fodderwala stated that ransomware attacks specifically have seen a surge of over 70% in the past year, highlighting the increased need for CrowdStrike's incident response and endpoint security services.
The positive outlook isn't exclusive to Fodderwala. Oppenheimer analyst Ittai Kidron also rates CrowdStrike as an Outperform stock with a price target of $300. Kidron believes that prominent security breaches will prompt companies to prioritize cybersecurity investments in large enterprises, positioning CrowdStrike to capture a significant portion of that expenditure.
Following the news, CrowdStrike's stock experienced a 4.9% increase to reach $274.03. Other security platform stocks also saw gains, with Zscaler rising by 3.3%, Palo Alto Networks experiencing a 2.6% increase, and Check Point Software Technologies gaining 0.8%.
Overall, this surge in CrowdStrike Holding's stock demonstrates the growing recognition of the company's robust solution in tackling cyber threats effectively.
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