Stifel analyst Adam C. Borg upgraded CrowdStrike Holdings Inc (NASDAQ: CRWD) to Buy from Hold with an increased price target of $225 from $153.
The analyst sees CRWD well positioned to capitalize on cybersecurity platform consolidation in coming years through internal development and targeted M&As.
Overall, the portfolio expansion and market growth offer CrowdStrike an overall $100 billion addressable market in 2024, which is expected to grow to $225 billion in 2028, writes the analyst.
Also, Borg notes that the company is prioritizing a $19 billion endpoint security addressable market (in CY24), with industry analysts forecasting mid-teens market growth in coming years.
The analyst says that CRWD is poised to sustain at least low-to-mid 20% growth and operating margin/FCF expansion in the coming years.
The analyst estimates revenue and EPS of $3.04 billion and $2.82 in FY24, $3.84 billion and $3.30 in FY25 and $4.75 billion and $3.98 in FY26.
CRWD will report Q3 results on November 28, 2023.
Price Action: CRWD shares are trading higher by 2.18% at $200.58 on the last check Monday.