CrowdStrike price target raised to $388 from $325 at Argus

Argus raised the firm’s price target on CrowdStrike (CRWD) to $388 from $325 and keeps a Buy rating on the shares after its Q3 earnings beat. The disruptions caused by CrowdStrike’s July 19 software update are a reputational black eye for the company, but the company has handled the remediation of the customer outage as well as could be expected, transparently accepting responsibility, quickly releasing a patch, working with customers to rapidly reboot and recover, developing new QA systems to make another such event highly unlikely, and providing a package of one-time customer discounts to make good with those affected by the outage, the analyst tells investors in a research note. The company’s new customer commitment program will undoubtedly slow revenue growth and provide some margin compression, but it is the right thing to do, the firm added.