As much of the human experiences moves to online platforms, cybersecurity has evolved from simple antivirus software to full-fledged cloud and AI-based endpoint detection and response. Leading the charge is CrowdStrike Holdings, Inc. (CRWD), which has now advanced beyond the realm of endpoint protection platforms toward more robust systems. CrowdStrike’s share price has responded in kind with the company’s successes. (See CrowdStrike stock charts on TipRanks)
Reporting on the matter is Michael Walkley of Canaccord Genuity Capital Markets, who wrote enthusiastically that the company can very well be a long-term winner and is actively accruing important segments of market share.
Walkley reiterated a Buy rating and declared a price target of $280. This target reflects a potential 12-month upside of 5.88%.
The five-star analyst explained that the current cybersecurity industry is a fragmented group of large “legacy players,” many lacking in innovation, plus smaller, less-focused firms. Although CrowdStrike has already landed among the top 3 cybersecurity firms, the analyst believes it has more room to grow. According to Walkley, CrowdStrike is in an advantageous position, ready to capture more market share and forge penetration.
With the recent high profile ransomware attacks, proper cybersecurity is something almost no company can forego. Walkley believes that “the rise in ransomware and targeted threats necessitates a best data-lake approach based on predictive analytics versus ‘good enough’ security.” A data lake is a security-focused data management tool.
SentinelOne, a close competitor which just completed the largest IPO of any cybersecurity firm, does not pose too much of a problem for CrowdStrike, according to Walkley. He expects the market to be “large enough to support multiple winners.” He bases this hypothesis on the fact that at the moment, five firms make up about 60% of the cybersecurity market.
On TipRanks, the analyst rating consensus for CRWD is a Strong Buy, based on 18 Buy ratings, and 1 Hold rating. The average CrowdStrike price target is $265.16, which reflects a potential 12-month upside of 0.27%. CRWD closed trading Friday at a price of $264.44 per share.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
