Morgan Stanley analyst Meta Marshall maintained a Hold rating on CrowdStrike Holdings today and set a price target of $475.00.
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Meta Marshall has given his Hold rating due to a combination of factors surrounding CrowdStrike Holdings. Despite the company’s ambitious growth targets, including a projected annual recurring revenue (ARR) of $20 billion by fiscal year 2036, there are concerns about how sales incentive programs might impact revenue growth. The company’s plans to expand its platform with new modules and initiatives, such as AI advancements and international growth, offer potential, but uncertainties remain about the translation of ARR growth into actual revenue increases.
Furthermore, while CrowdStrike’s innovations in AI for Security and the acquisition of Onum present promising opportunities, the market’s expectations for growth are already high. The company’s current penetration in its installed base is less than 20%, indicating room for growth, but the execution of these strategies and their impact on financial performance remain to be seen. These factors collectively contribute to the Hold rating, reflecting a cautious optimism about the company’s future potential balanced with current uncertainties.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $450.00 price target.
Based on the recent corporate insider activity of 129 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRWD in relation to earlier this year.