Written by Sam Bogda
Hosted by CrowdStrike Holdings Inc. (NASDAQ 🙂 held its annual Fal.Con user conference this week, and its management also held an investor briefing, prompting analysts to release notes offering their thoughts on the company and the event.
The Wells Fargo analyst maintained an overweight rating and a $250 target for the stock, telling investors that the most effective data points to come out of the conference were “a panel discussion with channel partners, including Worldwide Tech and Optiv.”
“Both noted improved demand trends, and Optiv said August was the strongest month in the company’s history,” the analyst said. “CrowdStrike continues to be the gold standard in the peripheral security market and is expanding the platform across many new areas. We believe they are well positioned to take advantage of improved demand trends in the second half of the year, and therefore we repeat CRWD as one of our top picks.”
Guggenheim Analyst has a buy rating and a $270 target price on CrowdStrike. He said the company announced two new strategic investments through the Falcon Fund (Salt Security and Vanta), a new service provider program (CrowdStrike Powered Service Provider), new product versions and capabilities, and the intent to acquire third-party attack surface management company Reposify.
“We’ve had conversations with some CrowdStrike customers and partners and got a real sense that CrowdStrike’s modular platform approach resonates with them. One customer we spoke to in particular said he was looking to replace other vendors with the CrowdStrike equivalent unit as multiple products became difficult to manage. But he said his organization is still focused on the best products, so capabilities still matter.”
The BTIG analyst, with a buy rating and a price target of $234 on CrowdStrike, said he exited the event with “a higher degree of confidence” in CrowdStrike’s growth potential and the company’s ability to withstand increased IT budget pressure caused by a weak economy.
“On the product side, we were very surprised by the overwhelmingly positive feedback on CRWD identity modules, which appears to be reaching an inflection point. Finally, we left the event satisfied with CRWD’s ability to drive incremental growth with advertising in the spin-off areas – namely DLP and external attack surface management,” Analyst wrote.
Finally, an analyst at Morgan Stanley said the investor briefing focused on communicating the platform’s long-term vision and strategic drivers for getting there.
The analyst, who has an overweight rating and a target price of $217 per share, said the bottom line, with their estimates unchanged on today’s briefing, didn’t think it presented any major surprises. The most important points, the analyst said, “include: the partner’s comment that security budgets remain defensible through August through September and the emerging opportunity in identity protection.”
CrowdStrike shares were down 2.6% on Wednesday.