Crowdstrike price target lowered to $265 from $300 at Scotiabank

Scotiabank analyst Patrick Colville lowered the firm’s price target on Crowdstrike to $265 from $300 and keeps a Sector Perform rating on the shares. The firm spoke with four large CrowdStrike customers, three lawyers and one cybersecurity insurance expert to better understand the implications from the CrowdStrike global outage. Based on this fieldwork, the majority of customers with minimal or even moderate impact are unlikely to pursue concessions from CrowdStrike, the analyst tells investors in a research note. For those with serious financial impacts, Scotiabank expects they will rely on cybersecurity insurance and also look to negotiate directly with CrowdStrike in hopes of receiving service credits or new offerings for free. The firm’s experts suggest that pursuing damages through the legal system is very much a last resort. Scotiabank sees added risk to its fiscal 2025 and 2026 annual recurring revenue estimates for Crowdstrike following the checks, but also less risk of legal costs dragging down its free cash flow targets.