Citi analysts released a note Tuesday, reacting to Buy-rated CrowdStrike Holdings Inc.'s (NASDAQ: CRWD ) recent user/partner event.
The analysts maintained a $200 price target on the stock, telling investors that after "compelling proprietary customer convos" and an "upside-surprising investor briefing," they have a higher conviction on CRWD disrupting multi-disciplinary cyber and IT budgets to successfully navigate "life after endpoint security."
"Beefed-up emerging modules convincingly annexing low-hanging adjacencies, along with Charlotte AI's first-to-market and credible monetization prospects (labor productivity in talent-constrained manual market) add meat to $10B growth aspirations, atop continued share grab from rampant legacy EPP/EDR estate modernization," they wrote.
"Considered with new, more assertive GTM motions (flex licensing, redoubled marketplace efforts, heavier indirect investments) against already best-in-class capital efficiency, resulting ~25% ARR CAGR and 30s% OPM/FCFM has scarcity value, which we feel is deserving of a premium terminal and relative valuation, bolstering our Buy rating," they added.
While the analysts did acknowledge that the Microsoft (NASDAQ: MSFT ) competition will remain a permanent overhang, they believe there are a "myriad [of] reasons to stay med/long-term constructive."
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