J.P. Morgan analyst Brian Essex has maintained their bullish stance on CRWD stock, giving a Buy rating on March 25.
Brian Essex has given his Buy rating due to a combination of factors that highlight CrowdStrike Holdings’ potential for growth and strategic positioning. The company is optimistic about a reacceleration in annual recurring revenue (ARR) as it concludes its cost containment initiatives, which were less costly than expected. This shift is expected to enhance growth in their Cloud and Identity segments, which had previously slowed due to discounted offerings.
Additionally, CrowdStrike’s Falcon Flex platform is proving to be a significant driver for platform adoption, with larger deals and increased customer commitments leading to potential ARR growth. The company’s strategic approach to mergers and acquisitions, focusing on complementary technologies, and its positive outlook for federal business further support the Buy rating. Moreover, the recent Wiz transaction is seen as beneficial for CrowdStrike, potentially enhancing its cloud security offerings and positioning it advantageously in the market.
Essex covers the Technology sector, focusing on stocks such as International Business Machines, Check Point, and CrowdStrike Holdings. According to TipRanks, Essex has an average return of 11.0% and a 56.33% success rate on recommended stocks.
In another report released on March 25, BTIG also upgraded the stock to a Buy with a $431.00 price target.