CrowdStrike Holdings, Inc. (NASDAQ: CRWD) disclosed that it has been accorded with a Provisional Authorization to Operate (P-ATO) at Impact Level 4 (IL-4) as required under the DoD’s Cloud Security Requirements Guide (SRG).
Now, using its Falcon cybersecurity platform, the company will be able to safeguard Controlled Unclassified Information (CUI) of Department of Defense (DoD) and Defense Industrial Base (DIB) customers.
Following the news, shares of the cybersecurity technology company rallied as much as 5%. This comes after closing almost 3% higher yesterday on the announcement of a strategic partnership with cybersecurity firm Mandiant (MNDT).
Milestone Achieved
The authorization adds another cornerstone to CrowdStrike’s achievements, which is making huge investments to expand its services to the public sector. Currently, the company’s technology is deployed by 65 of the Fortune 100 and three-quarters of the top 20 global banks, which safeguards enterprise risk and restricts breaches.
After IL-4 P-ATO authorization, CrowdStrike is striving for a DoD Impact Level 5 (IL-5) P-ATO to help secure National Security Systems (NSS).
Official Comments
Shawn Henry, CrowdStrike CSO and President of CrowdStrike Services, commented, “Adoption of superior cloud-native technologies is mission-critical for the DoD and the DIB, as all federal agencies must remain vigilant in today’s heightened threat environment.”
“This authorization will further CrowdStrike’s support to federal agencies in defending against modern cyber threats, and we remain committed to bolstering our engagements with the public sector,” Henry added.
Wall Street’s Take
Recently, D.A. Davidson analyst Rudy Kessinger maintained a Buy rating on CrowdStrike but lowered the price target to $250 (10.9% upside potential) from $265.
Shares of CrowdStrike have rallied 16% over the past year, while the stock still scores a Strong Buy consensus rating, based on 18 Buys and one Hold.
That’s alongside an average CrowdStrike price target of $275, which implies 22.1% upside potential from current levels.
News Sentiment
News Sentiment around CrowdStrike over the last seven days has been Very Bullish, with 100% of the articles published being Positive, compared to a 64% Bullish Sector Average.
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