Crowdstrike bear case ‘becoming harder to defend,’ says Morgan Stanley

Morgan Stanley analyst Hamza Fodderwala says bearish sentiment in Crowdstrike "was near all-time highs" coming into 2023, with concerns around competition/pricing limiting their ability to sustain 20%-30% topline growth longer-term. However, after attending the company’s investor briefing, where management took time to address these concerns and laid out their goal to reach $10B-plus in ARR longer-term, the firm’s estimates aren’t moving up but the analyst thinks "the bear case is becoming harder to defend." Morgan Stanley keeps an Overweight rating and $163 price target on Crowdstrike shares.