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Software outage brings risk to CrowdStrike’s Q2, says KeyBanc

KeyBanc analyst Eric Heath expects the global software outages to cause risk to CrowdStrike’s (CRWD) Q2 ending in July, with credits potentially issued to affected customers, and, over the near to medium term, win rates to potentially be impacted. The firm thinks We expect SentinelOne (S) and Palo Alto Networks (PANW) to be the biggest beneficiaries, while also likely benefiting Microsoft (MSFT) competitively in security. KeyBanc notes, however, that widespread outages do happen from time to time, which may suggest risk to CrowdStrike “could be relatively limited.” It has an Overweight rating on Crowdstrike with a $420 price target.

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