CrowdStrike (NASDAQ:CRWD) is well-known as a leader among cybersecurity stocks. And it demonstrated as much with a killer earnings report yesterday. That gave analysts a lot to smile about, with KeyBanc Capital Markets, via analyst Eric Heath, noting the leadership status that CrowdStrike enjoys in the endpoint security space. As a result, CrowdStrike shares blasted up 9% at the time of writing.
Heath also pointed out that the overall environment for cybersecurity competition is changing substantially. That wasn’t all, though; Brian Essex with J.P. Morgan also noted that, while CrowdStrike’s annual recurring revenue outlook wasn’t so great, it was offset significantly by the improvements to cash flow and overall profitability. Meanwhile, CrowdStrike is looking to build on its successes, stating that “point product vendors are being left behind.” That’s opening up new opportunities as businesses look for more robust cybersecurity providers, not simply those with one or two products to offer in the space.
The earnings win was solid, any way you look at it. Earnings topped analyst expectations by $0.18 per share, and revenue not only turned in a beat over analyst expectations but also slaughtered second quarter 2022 figures by a hefty 36.7%. Projections for the rest of the year, meanwhile, also looked great as both third-quarter and full-year projections were expected to swamp those concocted by analysts.
Analysts, meanwhile, are very much on board with CrowdStrike. Currently, CrowdStrike stock holds a Strong Buy rating, thanks to a combination of 26 Buy ratings and three Holds. Further, CrowdStrike stock offers investors 10.74% upside potential thanks to an average price target of $180.07.
