Stifel analysts upgraded shares of CrowdStrike Holdings Inc. (NASDAQ:CRWD) to Buy from Hold in a note Monday, lifting the price target on the stock to $225 from $153 per share.
The analysts told investors that endpoint security remains a top priority amongst businesses, and CRWD is a "leading provider" of software and services in the segment.
In addition, they state that the company stands out in the competitive space due to the differentiation of its "high-efficacy cloud-based endpoint technology, lightweight single-agent architecture and massive scale analyzing over 1 trillion events daily."
"Beyond this, through internal development and targeted M&A, CrowdStrike is building out a broader cybersecurity platform across adjacent cybersecurity (Cloud Security, Identity Security, SIEM, Vulnerability Management, etc.) and IT (IT Operations, etc.) use cases, which we think makes CrowdStrike one of a handful of vendors well-positioned to capitalize on cybersecurity platform consolidation in coming years," the analysts added.
The firm believes CrowdStrike has a number of secular and company-specific drivers to "sustain at least low-to-mid 20% growth and operating margin/FCF expansion in coming years."
CRWD shares are up 1.46% at the time of writing on Monday.